Bitcoin Price Gains 7% But Faces Bearish Pressure

Bitcoin Price: Can BTC Break Through Resistance?

Bitcoin Price– Bitcoin has experienced a 7% increase over the last 24 hours, despite most of its valuation indicators signaling a bearish trend. On-chain analytics platform CryptoQuant highlighted in a report published on March 11 that “all Bitcoin valuation metrics indicate that we are in bearish territory.”

CryptoQuant’s Bitcoin Bull-Bear Market Cycle Indicator is currently at its “most bearish level” of this cycle. Additionally, Bitcoin’s MVRV Ratio Z-score, which helps determine whether Bitcoin is overvalued or undervalued, has crossed its 365-day moving average, signaling that the recent upward price trend has lost momentum.

As of publication, Bitcoin is trading at $82,910, up from a low of $79,356 in the last 24 hours, according to CoinMarketCap data. Much of the recent price increase followed the reintroduction of the BITCOIN Act by Senator Cynthia Lummis, which proposes the US government purchase 1 million BTC over the next five years.

Falling Demand: Fastest Contraction Since July 2024

Despite the recent price jump, CryptoQuant reports that Bitcoin’s demand fell by 103,000 BTC last week, marking its fastest contraction since July 2024. The decline is attributed to growing uncertainty regarding inflation rates in the US and the impact of tariffs imposed by President Donald Trump in February.

CryptoQuant added that Bitcoin demand remains in “contraction territory,” with whales slowing their Bitcoin accumulation. The report also noted that US spot ETFs have turned into net sellers of Bitcoin.

What’s Next for Bitcoin?

Bitcoin remains down 14% over the past month, but similar corrections have occurred during previous bull markets. If Bitcoin breaks its current support level of $75,000 to $78,000, its next target could be as low as $63,000.

Despite this, Swan Bitcoin CEO Cory Klippsten remains optimistic, stating that there is a “more than 50% chance we will see all-time highs before the end of June this year.”

In conclusion, while Bitcoin faces bearish pressures in the short term, potential for future gains remains, depending on market developments.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.