Key Highlights:
Price Recovery: Bitcoin (BTC) has rebounded to approximately $82,000 after an 8.25% surge on Wednesday.Market Influences: The recovery aligns with U.S. President Donald Trump's announcement of a 90-day pause on reciprocal tariffs.Liquidation Data: Wednesday saw total liquidations reaching $589 million, with short positions accounting for $374 million.ETF Outflows: U.S. spot Bitcoin ETFs experienced a net outflow of $127.12 million on the same day.
Bitcoin's Recent Price Movements
At the week's onset, Bitcoin faced volatility due to uncertainties surrounding U.S. tariff policies, hitting a year-to-date low of $74,508 on Monday. However, following President Trump's announcement of a temporary halt on tariffs, BTC's price climbed over 8%, peaking at $83,588 and closing above $82,600 on Wednesday.
Market Liquidations and ETF Flows
Liquidations: The midweek price surge led to significant market liquidations.Total Liquidations: $589 millionShort Positions: $374 millionETF Outflows: Despite the price rebound, institutional interest appears to be waning, with U.S. spot Bitcoin ETFs recording a net outflow of $127.12 million on Wednesday.
Potential Scenarios for Bitcoin's Trajectory
Dead-Cat Bounce:Definition: A temporary recovery in price before continuing a downward trend.Indicators: The Relative Strength Index (RSI) on the daily chart is at 47 and trending downward, suggesting increasing bearish momentum.Implication: If this scenario unfolds, BTC might retest the support level at $73,072.
Trendline Breakout:Definition: A decisive move above a descending trendline, indicating potential bullish momentum.Indicators: A break and close above the $85,000 resistance, aligning with the 200-day Exponential Moving Average (EMA).Implication: Such a move could propel BTC towards the psychological level of $90,000 and possibly the March 2 high of $95,000.
Conclusion
Bitcoin's current stabilization around $82,000 places it at a pivotal juncture. The coming days are crucial in determining whether BTC will experience a dead-cat bounce, leading to further declines, or achieve a trendline breakout, signaling renewed bullish momentum. Investors should monitor key resistance and support levels, along with market indicators, to navigate the potential scenarios ahead.
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📢Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your research before making investment decisions.