- Bitcoin holds key demand zones despite volatility, with a potential triple-bottom pattern signaling another push higher.
- Analysts see Bitcoin’s structure intact as price tests local support, but failure could trigger a move toward range lows.
- Macro factors like Fed policy shifts and market uncertainty influence Bitcoin’s outlook, with liquidity injection possibly
Bitcoin is in a consolidation phase as price action fluctuates within a range. Analysts note that BTC is currently testing a local demand zone, which could act as a short-term support level. However, if this level fails, a retest of the range lows could follow. Beyond that, the high timeframe (HTF) demand zone, marked months ago, would become the next crucial support level. The ongoing price chop suggests patience is necessary as the market develops.
Bitcoin’s Technical Structure Holds Strong
CrediBULL Crypto, a popular analyst, highlights Bitcoin’s price movement within a structured range. The latest dip remains within expected volatility, maintaining the broader trend intact. Bitcoin faces resistance at a supply zone divided into two key levels: a daily supply area and a 61.8% Fibonacci retracement level. The market previously reversed from HTF demand, forming higher lows before hitting resistance in the daily supply region. Now, the price is testing local demand once again.
The broader structure suggests potential for a triple-bottom pattern. If Bitcoin holds this local support, another push into the supply zone above is possible. However, a breakdown below could accelerate downside movement toward the range lows and possibly the HTF demand zone.
Macroeconomic Factors Impacting Bitcoin’s Price
Beyond technical factors, macroeconomic developments add to market uncertainty. Inflation fears and tariff threats from former U.S. President Donald Trump continue to weigh on risk assets, according to Forbes. Additionally, concerns over an unidentified security breach in crypto have supported short-term selling pressure.
On the other hand, BitMEX co-founder Arthur Hayes is optimistic. He foresees the Federal Reserve’s shift in monetary policy to trigger a Bitcoin rally in April. The latest Federal Open Market Committee (FOMC) meeting reiterated expectations of a dovish pivot.
The Fed left interest rates unchanged while cutting economic growth forecasts. Additionally, it hinted at a gradual reduction in its balance sheet tightening measures. These adjustments could inject fresh liquidity into markets, benefiting Bitcoin in the coming months.
