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Bitcoin Price Rebounds Above $84,000 After Brief Downturn
Bitcoin price bounced back, surpassing the key resistance level of $84,000, after a brief downturn to a multi-month low of $78,200 on Friday. This rebound coincided with a recovery in U.S. equities, which pared back earlier losses. The Dow Jones index rose 165 points, while the Nasdaq 100 gained 80 points.
Market Recovery Catalysts
A potential catalyst for the recovery was the news that BlackRock, the world’s largest asset manager, maintained its bullish stance on Bitcoin this week. BlackRock confirmed plans to allocate about 2% of its model portfolio assets to its IBIT ETF.
Additionally, the release of an encouraging personal consumption expenditure report in the United States also contributed to the rebound. Core PCE, closely monitored by the Federal Reserve, rose 0.3% from December and 2.6% year over year, marking its smallest increase since 2021.
Interest Rate Cuts and Inflation Concerns
Federal Reserve officials hope inflation will continue trending toward the 2% target, which would support further interest rate cuts. However, this could be complicated by Donald Trump’s recent indication that new tariffs may take effect in March.
Market Analysts’ Predictions
Market analysts remain split on Bitcoin’s next price action. Aurelie Barthere, principal research analyst at Nansen, predicted that Bitcoin will enter a consolidation phase following the recent crash.
“We just had 4 large daily red candles on high volume after weeks of range-bound price action for BTC. After this type of ‘panic’ selling, there needs to be a period of price consolidation with higher lows to confirm we resume higher (buyers slowly regaining confidence after having been burnt).”
On the other hand, Mark Cudmore, a Bloomberg analyst, warned of further downside, suggesting Bitcoin could enter a prolonged crypto winter.
“The real panic may be ahead of us still. Bitcoin always has another 70%+ crash in its future, by construction. $72k-$74k would appear to be the technical crunch zone that might trigger the next crypto winter.”
Bitcoin Price Analysis
Bitcoin formed a double-top pattern at $108,532, with its neckline positioned at $89,000. The distance between the double-top and the neckline was 18%.
Applying the same distance from the neckline sets Bitcoin’s target at approximately $72,850, aligning with its highest level from March 2023. A drop to this level could be a bullish signal, marking the completion of the break-and-retest chart pattern.
For more updates on Bitcoin and other cryptocurrencies, stay tuned to Global Crypto News.
