Bitcoin Price Analysis

Bitcoin price has remained under pressure in the past few months, entering a technical bear market after a 20% drop from its highest level this year.

Bitcoin (BTC) and other altcoins have significant catalysts that could push prices higher in the coming months. Currently, Bitcoin is trading at $90,000, up about 15% from its monthly low.

Market Influences

First, US bond yields have retreated from their peak levels this year. The benchmark ten-year yield decreased from 4.8% in January to 4.24%. Similarly, the 30-year and five-year yields have also declined recently.

Falling bond yields indicate that the market anticipates further interest rate cuts from the Federal Reserve this year. Economists are expecting three cuts following a series of weak US economic data. Consumer and business confidence has weakened since Donald Trump imposed tariffs on key US trading partners.

The labor market is showing signs of softness, with the unemployment rate rising to 4.1% in February, while nonfarm payrolls increased by only 151,000, falling short of the expected 159,000.

US Dollar Index and Bond Yields

Second, the US dollar index (DXY) is experiencing a significant decline. It has dropped for five consecutive days, reaching a low of $103.78—the lowest since November—about 7% down from its peak this year. Bitcoin tends to perform well during declines in the US dollar and bond yields because this increases the likelihood of Fed interest rate cuts.

> When analyzing this recent decline in the DXY historically, it is challenging not to be bullish. Past instances of a 3-day dip greater than -2% or -2.5% have coincided with Bitcoin bear market troughs.
> — Jamie Coutts CMT (@Jamie1Coutts) March 6, 2025

Additionally, the global money supply is expected to rise as governments increase spending. Germany plans to spend billions on defense, and China has announced plans for increased expenditure. The correlation between Bitcoin and the global M2 money supply is notable.

Bitcoin Price Technical Analysis

Source: crypto.news

The daily chart indicates that Bitcoin’s price has stabilized recently, climbing from a low of $78,000 last week to $90,000.

Bitcoin remains above its ascending trendline, connecting its lowest swings since August last year. It has also surpassed the 50-day moving average and the weak, stop & reverse point on the Murrey Math Lines.

For Bitcoin to confirm a bullish breakout, it needs to surpass the strong pivot and reverse level at $93,750, coinciding with this week’s high. A breakout above this level could lead to gains potentially reaching $100,000.

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