Bitcoin (BTC) has bounced back, maintaining its position above the 200-day Exponential Moving Average (EMA).
The price recently surged 6.89% in 24 hours, reaching $89,990 , signaling a potential recovery. However, market volatility and global economic shifts raise concerns about a possible downturn. Will Bitcoin sustain its upward momentum?
Bitcoin Faces High Volatility – Key Levels to Watch
Over the past week, Bitcoin’s price has fluctuated between a low of $78,197 and a high of $95,152. On March 4, BTC recovered from $81,463 to close at $87,240.
Currently, Bitcoin is trading at $87,040, with a slight 0.23% intraday pullback. The 200-day EMA is acting as a crucial support level. However, a potential bearish crossover between the 50-day and 100-day EMAs could trigger further downside pressure.
Support and Resistance Levels:
- Support: $78,197 (7-day low)
- Resistance: $94,000 (50-day EMA)
A break below $78,000 could push Bitcoin into bearish territory, while a rally above $94,000 may reignite bullish momentum.
Crypto Analyst Predicts Bullish Rebound
Despite uncertainty, crypto analyst Ali Martinez believes Bitcoin is primed for a bullish comeback. He notes that BTC often rebounds when the profit-loss margin drops to -12%. Currently, this margin stands at -15.4%, suggesting Bitcoin is oversold and due for a recovery.
Martinez also points to Bitcoin’s Sharpe ratio, a metric used to identify buy-the-dip opportunities. The ratio has recently reset to a low-risk phase, which historically precedes price surges.
Institutional Outflows Continue in Bitcoin ETFs
On March 4, U.S. Bitcoin spot ETFs saw a net outflow of $143.43 million.
- Fidelity led with $46.08 million in outflows.
- ARK and 21Shares followed, with $43.92 million.
- Grayscale Bitcoin Trust was the only ETF to record an inflow of $35.77 million.
Despite these outflows, some ETFs, including BlackRock, saw no net changes, indicating mixed institutional sentiment.
Final Thoughts – Will Bitcoin Hold Above $87K?
Bitcoin’s 200-day EMA remains a critical support level. If BTC breaks above $94,000, it could confirm a strong bullish reversal. However, continued selling pressure and ETF outflows may trigger a drop below $78,000.
Do you think Bitcoin will hold its ground or face another pullback? Share your thoughts in the comments!
