- Bitcoin trades below $95K amid short-term weakness while a 3% allocation strategy significantly outperforms traditional assets.
- A 3% Bitcoin and 97% cash blend delivered 20% real returns since 2020, outpacing both cash and money market funds under inflation.
- Despite near-term volatility, minimal Bitcoin exposure proved effective in reversing negative returns across a five-year inflationary period.
Bitcoin trades near $94,350 after a sharp rejection from recent highs, triggering caution among traders. Short-term indicators show weakness, especially on the hourly timeframe. Besides, the broader market sentiment remains uncertain. Meanwhile, a 3% Bitcoin allocation since 2020 outperformed cash and money market funds, according to new data.
Short-Term Bitcoin Structure Signals Caution
On the 1-hour timeframe, Bitcoin dropped below key moving averages. This signals a possible trend shift. The asset now hovers inside a tight consolidation range between $94,000 and $94,800. Moreover, it struggles to reclaim the Ichimoku Cloud, which further weakens its short-term technical posture.
Source: CRG
Price action turned volatile in early May, spiking to nearly $97,800 before falling. Since then, momentum has faded. Hence, bulls must regain $95,250 to restore strength. The $96,129 resistance remains a major ceiling. However, clean lows sit just under $94,000, forming critical support.
Additionally, the monthly open at $94,125 and the yearly open at $88,548 act as strong safety nets. The volume has stayed moderate, with no major breakout attempts. Consequently, Bitcoin may remain range-bound unless volatility surges again.
Blended Strategy Outpaces Traditional Safe Havens
A new performance analysis from River shows a 3% Bitcoin and 97% cash blend outpacing traditional options. This strategy returned +20% in real terms since 2020. In contrast, money market funds lost 6.7%, and cash dropped 19% in purchasing power.
Source: Cointelegraph
The data covers a five-year period of persistent inflation. Moreover, the 3% Bitcoin allocation injected enough growth to reverse cash’s negative returns. Peaks in 2021 and 2022 fueled substantial gains. However, drawdowns occurred in 2022 and early 2023 before recovery resumed.
By late 2024, Bitcoin surged again, helping the blended portfolio outperform. Additionally, the chart underscores how small crypto exposure can boost long-term returns. Hence, even minimal allocations can reshape conservative strategies.
Bitcoin must reclaim short-term resistance zones to attract bullish momentum. Until then, traders watch for consolidation or breakdown signals. Moreover, as macro pressures remain, alternative strategies with Bitcoin exposure may gain further appeal.
