Bitcoin (BTC) is having a relatively calm weekend as it continues to trade sideways after struggling to build any momentum of note. The flagship cryptocurrency’s muted price performance comes despite the Securities and Exchange Commission delivering good news on mining and ETF inflows in positive territory. BTC is marginally down over the past 24 hours as it continues to trade around the $84,000 mark, with neither buyers nor sellers having a substantial impact on prices. Bitcoin ETFs Back In Action Bitcoin investors had been cashing out of spot Bitcoin ETFs for most of March. However, data from Farside suggests a significant shift in investor sentiment this week, with capital flowing back into the ETFs. Bitcoin ETFs registered inflows totaling around $734 million earlier this week as market sentiment turned positive, with the Federal Reserve announcing it would cut rates twice this year. However, the positive sentiment has not reached all crypto ETFs, with Ethereum ETFs registering outflows for a thirteenth straight day, even as Bitcoin ETF inflows pick up pace. Spot Bitcoin ETFs closed the week positively, registering inflows worth $83 million on March 21. BlackRock’s IBIT saw inflows worth $104 million, while Grayscale’s GBIT saw outlaws worth $21 million. Meanwhile, the other ETFs reported little or no movement. IBIT’s inflows extended the inflow streak to six consecutive days while trading volumes across all ETFs hit $1.13 billion on March 21. Markets Will Remain Pressured Until April A research analyst at Nansen has said global trade war concerns will keep the crypto and traditional markets under pressure until at least April. However, the analysts stated any potential resolution could bring the next big market catalyst and dictate price action. Bitcoin has dropped nearly 20% since President Donald Trump announced import tariffs on Chinese goods, a day after his presidential inauguration. Despite a pro-crypto narrative, tariff and trade war fears will continue to pressure the market until at least April 2. The analyst stated in a post on X, “I’m looking forward to seeing what happens with the tariffs from April 2 onwards, maybe we’ll see some of them dropped but it depends if all countries can agree. That’s the biggest driver at this moment. Risk assets may lack direction until the tariff-related concerns are resolved, which may happen between April 2 and July, presenting a positive market catalyst.” The analyst also stated that the Fed’s interest rate is also contributing to the market slump by adversely impacting risk appetite among traders. “We’re waiting for the Fed to see proper “bad news” before they will really start cutting rates.” Markets have priced in an 85% chance that the Federal Reserve will keep interest rates unchanged during the next Federal Open Market Committee (FOMC) meeting, set for May 7. However, the Fed has indicated that inflation and recession concerns are transitionary, which could be interpreted as a positive sign for investors. According to Iliya Kalchev, Dispatch Analyst at Nexo Digital, “Markets may now expect upcoming economic data with greater confidence. Cooling inflation and stable economic conditions could further boost investor appetite, driving additional upside for Bitcoin and digital assets. Keep an eye on key reports, including Consumer Confidence, Q4 GDP, jobless claims, and next week’s crucial PCE inflation release, to gauge the likelihood of future rate cuts.” Bitcoin (BTC) Price Analysis Bitcoin (BTC) registered a marginal decline on Saturday as price action remained muted following Wednesday’s rally. The optimism after the FOMC meeting has faded, with traders looking to the capital for the next catalyst to dictate price action. The hope that the government will make a significant BTC purchase has also waned in recent weeks, impacting investor sentiment. President Trump had recently signed an executive order to establish a strategic Bitcoin reserve. However, traders felt the order fell short of expectations, proposing only to use the Bitcoin seized during criminal and civil forfeitures to build the reserve. CryptoQuant Head of Research Julio Moreno stated, “CryptoQuant’s Bull Score Index shows the least bullish conditions since January 2023. With a Bull Score of 20, the model suggests a weak investment environment for Bitcoin, reducing the likelihood of a sustained rally in the near term. If the score remains below 40 for an extended period, it could signal the continuation of bearish market conditions, similar to previous bear market phases.” However, the Bitcoin Act, reintroduced by Senator Cynthia Lummis, could revive waning BTC demand. The act proposes the US government purchase 1 million BTC over the next five years, with a mandatory 20-year holding period. BTC entered the weekend positively, rising almost 4% to move past the 200-day SMA and reach an intraday high of $85,363 before settling at $84,002. Buyers retained control on Saturday as BTC registered a marginal increase and settled at $84,398. Despite the positive sentiment, the price fell back in the red on Sunday, dropping over 2%, slipping below the 200-day SMA and settling at $82,611. BTC started the current week on a bullish note, rising almost 2% and settling at $84,016. However, selling pressure intensified on Tuesday as the price plunged to an intraday low of $81,187. It recovered from this level to settle at $82,775, ultimately registering a drop of 1.54%. Source: TradingView Markets rallied on Wednesday following the FOMC meeting. As a result, BTC surged over 5%, moving past the 20 and 200-day SMAs and settling at $85,875. However, the rally was short-lived as BTC lost momentum on Thursday, dropping over 3%, slipping below the 20 and 200-day SMAs and settling at $84,215. Price action remained muted on Friday as BTC registered a marginal decline and settled at $84,051. Sellers retained control on Saturday as buyers failed to build momentum. As a result, BTC registered another marginal decline and settled at $$83,822. The current session sees BTC marginally up as buyers look to push the price above the moving averages and $85,000. A break above the moving averages could set BTC on a course cross above $85,000. A break above this level could see BTC push towards $90,000. On the other hand, if sellers retake control, the price could fall to $80,000. The RSI sits under the neutral zone, while the MACD indicates buyers have the upper hand. 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.
