Key Takeaways:
Bitcoin fell 2 percent on March 6, slipping below $90,000 as market optimism faded despite anticipation of a potential U.S. Bitcoin reserve announcement.
Bulls failed to sustain gains above $92,000, with resistance preventing a breakout into Bitcoin’s previous trading range.
Traders remain cautious ahead of the White House Crypto Summit, despite speculation about a pro-Bitcoin policy shift.
U.S. jobless claims data increased rate cut expectations, but macroeconomic catalysts had little immediate impact on crypto markets.
Bitcoin Struggles Below $90K as Bulls Fail to Hold Momentum
Bitcoin’s brief push toward $93,000 met strong resistance, leading to a 2 percent decline as market participants remained skeptical about a potential Bitcoin reserve announcement at the White House Crypto Summit.
Data from Cointelegraph Markets Pro and TradingView confirmed that BTC/USD rejected $92,000 for the second time this week, signaling continued resistance at this key level.
Despite growing speculation that the U.S. government may introduce a Bitcoin or crypto reserve policy, traders largely dismissed the news, with caution dominating sentiment ahead of the March 7 event.
"There's the retest of $92K resistance. It worked so well the first time bulls wanted to do it again," trader Justin Bennett commented, revealing a short position from $91,000.
Other analysts highlighted $90,000 as a key decision point, noting that a breakdown could push Bitcoin lower toward key support levels.
Will the Crypto Summit Spark a Bitcoin Breakout?
Some market participants, such as Crypto Fella, suggested that Bitcoin’s recent price action could be setting up for a major breakout, given the expected volatility surrounding the White House Crypto Summit.
If policymakers announce a Bitcoin reserve framework, it could act as a catalyst for renewed bullish momentum.
However, if the announcement is vague or lacks immediate action, Bitcoin could face further downside pressure.
Macroeconomic Trends: Fed Rate Cut Speculation Grows
Beyond crypto-specific events, traders continue to monitor U.S. macroeconomic trends, particularly interest rate expectations from the Federal Reserve.
U.S. jobless claims came in higher than expected, fueling speculation that the Fed may cut rates sooner to prevent a further economic slowdown.
According to the CME Group’s FedWatch Tool, markets are pricing in a 45 percent chance of a rate cut in May, a shift that could support Bitcoin and risk assets.
However, inflation remains a wildcard, and the Federal Reserve has yet to confirm any significant policy changes.
What’s Next for Bitcoin?
$90,000 remains a key support level – If Bitcoin holds above this threshold, a retest of $92,000 and $95,000 could be possible.
Crypto Summit’s impact remains uncertain – A strong pro-Bitcoin policy shift could boost market confidence, while a lack of clarity could lead to further declines.
Macroeconomic trends favor Bitcoin in the long term – If rate cuts materialize, liquidity expansion could support a renewed Bitcoin rally.
Bitcoin’s price action reflects trader skepticism, as markets wait for concrete policy announcements before taking decisive action. If the U.S. government signals a stronger embrace of Bitcoin, it could provide the momentum needed to break above $95,000. However, if regulatory uncertainty lingers, Bitcoin may remain range-bound or face further downside pressure.
