Bitcoin ($BTC ) has undergone a period of strong volatility recently, but currently, the price seems to be stabilizing around 87,000 USD. This raises questions among many investors: Is this a sign of weakness, or is Bitcoin just accumulating to prepare for a new explosion?
Bitcoin struggles against market pressure.
In recent days, Bitcoin has struggled to maintain its upward momentum due to several influencing factors from the global financial market. One of these is the revised U.S. Q4 GDP data, which was increased to 2.3%, higher than expected. Along with this, the lower-than-expected jobless claims indicate that the U.S. economy remains stable, which may lead the Federal Reserve (Fed) to continue maintaining high interest rates to control inflation.
The Fed's tightening monetary policy always poses a major barrier to Bitcoin and risky assets. High interest rates cause capital to shift towards safe channels like gold and bonds instead of flowing into the cryptocurrency market. This somewhat explains why Bitcoin has not been able to break through strongly in recent times.
In addition, the event of President Donald Trump declaring tariffs on imported cars into the U.S. has also had a significant impact on the financial market. Many experts are concerned that the new round of tariffs, expected to take effect from April 2, will put pressure on risky assets. Once again, Bitcoin is the name being affected.
Gold rises sharply, Bitcoin has yet to break through.
While Bitcoin stabilizes, gold continues to show strength by consistently hitting new peaks, reaching 3,059 USD/ounce – the highest level in history. In the past 12 months, gold has increased by more than 7 trillion USD in market capitalization, bringing the total capitalization to nearly 21 trillion USD.
Looking at this trend, many question whether Bitcoin can soon follow gold to establish a new high. However, unlike gold, Bitcoin remains a highly volatile asset and is subject to many influences from monetary policy as well as macroeconomic fluctuations.
However, history has repeatedly shown that whenever Bitcoin goes through a period of accumulating stabilization, it is usually followed by a strong explosion. So, is this time different?
Signs of a new explosion?
Although the price of Bitcoin has not seen significant fluctuations, some technical analysts still see short-term growth opportunities.
Trader Titan of Crypto believes that BTC is forming a bullish pennant pattern on the 4-hour timeframe. If this pattern is confirmed, Bitcoin could bounce to the 91,000 USD mark in a short time.
Trader Mikybull Crypto predicts a higher target of 112,000 USD, based on changes in market structure.
These predictions are not without basis. Bitcoin is still in a long-term upward trend, and many times in the past, when the price stabilized for a while, it served as a springboard for the price to break through important resistance levels.
Under the influence of monetary policy from the Fed, global economic developments, and competition from gold, Bitcoin may not break through anytime soon. At this moment, investors need to remain alert to identify what constitutes a normal correction and what signals a genuine trend change.
Source: Theblock101.com
