Bitcoin may struggle to reclaim and sustain a price above $94,000, as market analysts warn of significant resistance following recent volatility.
Bitcoin Faces Challenges Breaking $94K
According to a March 3 market report from Bitfinex analysts, Bitcoin is encountering strong resistance after failing to hold above $94,000. The cryptocurrency briefly surged from $85,000 to $95,000 on March 1 following U.S. President Donald Trump’s pledge to support a crypto reserve. However, intense selling pressure in the spot market quickly erased most of those gains.
Currently, Bitcoin is trading around $87,190, meaning an 8% increase is needed to retest the $94,000 level, per CoinMarketCap data. Analysts remain uncertain about whether the recent downtrend is over or if Bitcoin will establish an uptrend in the short term.
Market Sentiment Remains Unclear
Pseudonymous crypto trader Rekt Capital suggested in a March 4 X post that while historical trends indicate a potential bottom, further downside is still possible. He noted that Bitcoin might stabilize around $93,500 in the coming days, but this doesn’t rule out another dip below that level.
Meanwhile, analyst Axel Adler called it a “good sign” that Bitcoin buyers stepped in when the price briefly touched $81,000. However, MN Trading founder Michaël van de Poppe advised waiting until the end of the week due to upcoming macroeconomic events that could impact price movements.
Volatility Expected Until Strong Buyers Enter the Market
Bitcoin’s price action is likely to remain volatile until more long-term investors enter the market, rather than traders seeking short-term arbitrage opportunities, according to Master Ventures founder Kyle Chasse.
Upcoming economic reports, such as the U.S. Consumer Price Index (CPI) release on March 12 and the Federal Reserve’s interest rate decision on March 19, may further influence Bitcoin’s trajectory.
Meanwhile, the Crypto Fear & Greed Index, which gauges investor sentiment, remains in the “Extreme Fear” category with a score of 20—unchanged since February 25.
