BTC Price Faces Bearish Pressure
Bitcoin traders remain cautious as the market shows bearish signs following the recent monthly and quarterly closes. BTC briefly touched $81,200, marking its lowest level in two weeks. Analysts highlight a “bearish engulfing” candle on the weekly chart, indicating potential further downside.
Market watchers are also observing compression between the 50-day and 50-week EMAs, a pattern often preceding significant price moves.
US Tariffs and Economic
Data in FocusApril 2 marks the start of new US trade tariffs, which could impact $1.5 trillion worth of imports. This event coincides with key employment data releases, increasing uncertainty for risk assets. Fed Chair Jerome Powell’s upcoming speech on April 4 will also be closely watched, as traders look for signals on potential interest rate cuts, with expectations leaning towards a decision in June.
Bitcoin’s Weak Q1 Performance
BTC is down 12.7% for Q1, making it the worst first quarter since 2018. Gold has outperformed as a safe-haven asset, while Bitcoin has experienced a 30% decline from its January peak. However, analysts note that corrections of this magnitude have historically been part of Bitcoin’s market cycles.
MVRV Ratio Indicates Market Cooling
The market value to realized value (MVRV) ratio is trending toward its long-term average, suggesting that the market is exiting an overheated phase. However, analysts warn that no clear bottom signal has emerged yet, leaving room for further downside risk.
Coinbase Premium Shows Stability
Despite market volatility, the Coinbase Premium—measuring BTC price differences between Coinbase and Binance—has remained stable. Analysts interpret this as a potential sign of reduced panic selling and a possible shift towards renewed investor confidence.
Bitcoin remains at a critical juncture as traders assess bearish signals, macroeconomic factors, and investor sentiment. While short-term uncertainty persists, historical trends suggest that corrections are a natural part of BTC’s long-term growth cycle.
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