Bitcoin (BTC) Price Sustains Above 200-Day EMA and Teases a Comeback Rally Above $90K
Bitcoin bounced back to the $87,000 mark with a 24-hour surge of 4.25% as the crypto market witnessed an overnight recovery. This recovery run in Bitcoin signals a potential boost.
However, the increased price fluctuations and uncertainty in the market, along with changing global dynamics, warn of a potential downfall. Amid such warnings, the question remains: will the Bitcoin price maintain its recovery rally?
High Volatility Drives Bitcoin to Turbulent Waves
The increased fluctuations in the crypto market have been making significant waves over the past few days. In the past week, Bitcoin’s price has fluctuated from a low of $78,197 to a 7-day high of $95,152.
On March 4, Bitcoin bounced from a 24-hour low of $81,463 to close at $87,240. Currently, Bitcoin is trading at a market price of $87,040, showing a minor intraday pullback of 0.23%.
As Bitcoin struggles to maintain dominance above the 200-day EMA line, the prevailing downturn warns of a potential bearish crossover between the 50- and 100-day EMA lines. However, the daily RSI line maintains a sideways shift slightly below the halfway level.
Despite ongoing uncertainty and volatility, the 7-day price range proves crucial as both support and resistance levels. The 7-day low of $78,197 could act as an important support level if Bitcoin falls below the 200-day EMA. Conversely, the 50-day EMA, around the $94,000 mark, might serve as a key overhead resistance level.
Analyst Signals Clear Skies Ahead For Bitcoin
Bitcoin’s price action remains uncertain due to increased volatility. However, crypto analyst Ali Martinez suggests a bullish rebound is possible as Bitcoin has historically recovered when the loss margin hits negative 12%. Currently, data shows a trader realized price and profit-loss margin at negative 15.4%, indicating a strong possibility of bullish rebound as the market is significantly oversold.
> #Bitcoin $BTC has historically rebounded when the trader loss margin reaches -12%. Right now, it’s sitting at -15.4%, signaling a potential reversal!
> — Ali (@ali_charts) March 4, 2025
Furthermore, the analyst points to the Bitcoin Sharpe ratio as a tool for identifying potential buy-the-dip opportunities. He notes that the Sharpe ratio resets to a low-risk phase after reaching a high-risk zone, and the ratio is currently undergoing a pullback after just such a high-risk phase.
> #Bitcoin $BTC Sharpe Ratio typically resets to “Low Risk” after hitting “High Risk.” This could be the time to start setting cash aside and get ready for a potential buy-the-dip opportunity!
> — Ali (@ali_charts) March 4, 2025
Institutional Outflows in BTC Spot ETFs Continue
On another note, institutional outflows in U.S. Bitcoin spot ETFs continued on March 4, with the daily total net outflow recorded at $143.43 million. Grayscale Bitcoin Trust was the only ETF to record an inflow on that day, amounting to $35.77 million. In contrast, Fidelity led the outflows with $46.08 million, followed by ARK and 21Shares with outflows of $43.92 million. Other funds like Franklin, Bitwise, Invesco, and WisdomTree also reported significant outflows.
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