Bitcoin Price Analysis: BTC Bounces Back To Reclaim $80,000

Bitcoin (BTC) bounced back above $80,000 despite facing volatility and selling pressure. The flagship cryptocurrency dipped to a low of $76,365 before recovering to its current level. BTC is down nearly 30% from its all-time high, with the combined losses of the crypto and stock markets rising to over $6 trillion in the past two months. Mt. Gox Moves $931M Worth Of BTC To Unknown Address Defunct crypto exchange Mt. Gox has transferred 11,833 BTC worth $931 million to an unknown wallet, sparking fears of potential selloffs. The latest move comes after a spate of actions by the exchange, including transferring over $1 billion worth of BTC to a wallet “1Mo1n.” The latest transaction was made by the same wallet, which is now recognized as an official Mt. Gox wallet. The defunct exchange still holds around 35,915 BTC , worth $2.85 billion. Concerns about possible selloffs have caused various reactions each time Mt. Gox completes a transfer. However, the influence of these transactions has waned over the years. Today’s transfers did not have a substantial impact. However, traders remain cautious with the market facing considerable selling pressure thanks to factors like tariffs, a potential trade war with China, and waning investor sentiment. Meanwhile, BTC’s retail sentiment has turned bearish as traders react to its protracted decline. According to an analysis by Santiment, social media chatter about lower prices has escalated, a sign of smaller investors capitulating. Senator Cynthia Lummis Reintroduces Bitcoin Act Senator Cynthia Lummis reintroduced the Bitcoin Act at a Bitcoin-focused conference hosted by the Bitcoin Policy Institute. The Bitcoin Act, co-sponsored by West Virginia Republican Senator Jim Justice, proposes the US government acquire 1 million BTC as part of its national reserve. The legislation was first introduced in July 2024 but failed to gain traction due to limited support. Lummis is looking to revive the bill with the new Congressional session underway. Lummis referred to Bitcoin’s symbol in her announcement, stating, “₿ig things cooking,” which many took as a sign of major developments or potential legislative initiatives. Bitwise Rolls Out New ETF Bitwise has announced plans to launch a new exchange-traded fund on the New York Stock Exchange which includes public companies holding at least 1,000 BTC in their corporate treasuries. Bitwise stated in a press release that the Bitwise Bitcoin Standard Corporations ETF will include 10 holdings at launch, including Strategy, MARA Holdings, and CleanSpark. Other holdings in the ETF include Riot Platforms, Boyaa Interactive, and Galaxy Digital. Bitwise CIO Matt Hougan said the decision to include the aforementioned companies in the ETF was due to their perception of BTC as a strategic reserve asset that is liquid and scarce. “We think companies are only getting started here, and this ETF gives investors exposure to innovative firms at the forefront of this trend.” However, the ETF will not invest in BTC directly or through derivatives. Instead, it will give investors exposure to companies making significant moves in the crypto space. The launch comes a few days after Bitwise announced another ETP that combines Bitcoin and Gold, adjusting allocations based on market conditions. Bitcoin (BTC) Price Analysis Bitcoin (BTC) is down nearly 30% from its all-time high as it struggles to stay above $80,000. The flagship cryptocurrency’s slump began after key stakeholders and whales began taking profits in mid-February, triggering a wave of selloffs. The period between February 20 and March 8 saw 22,702 BTC transferred from private wallets to exchanges, implying investors were preparing to sell their holdings. Institutional accumulation of the asset has also slowed down as buyers began reducing their exposure in February. Investor sentiment has also waned thanks to tariff tensions with Canada, a potential trade war with China, and disappointment with the strategic reserve announcement. With the White House crypto summit and the Bitcoin reserve order already factored in, the crypto market has run out of positive catalysts, with prices weighed down by a slowing economy. QCP Capital stated in a note, “Until crypto finds a new narrative, we`re likely to see an increased correlation between BTC and equities in the near term. Both risk assets are currently trading near their recent lows, and with tariff risks still looming, volatility could pick up heading into key U.S. macro data releases.” BTC registered a sharp decline on Monday, dropping nearly 9% to go below $90,000 and the 20-day SMA to $86,225. The price fell to an intraday low of $81,500 on Tuesday as selling pressure intensified. However, it recovered from this level to register an increase of 1.27% and settled at $87,316. BTC reclaimed $90,000 on Wednesday, rising nearly 4% to $90,639. Unfortunately, it could move past the 20-day SMA, facing volatility on Thursday and dropping almost 1% to $89,957. Bearish sentiment intensified on Friday as the price fell 3.53% to $86,781, but not before hitting a low of $84,722. Source: TradingView Sellers retained control over the weekend as BTC dropped 0.59% on Saturday. Selling pressure intensified on Sunday as the price plunged below the 200-day SMA to an intraday low of $80,005 before settling at $80,736. Buyers attempted a recovery on Monday as BTC rose to an intraday high of $84,978. However, it lost momentum after reaching this level and dropped nearly 3% to $78,262. The price has recovered during the ongoing session and is up almost 4%, trading at $81,760. BTC must consolidate and close above $80,000 to prevent another decline towards $75,000. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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