Bitcoin prices recovered modestly from their monthly lows, but struggled to surpass key resistance at $85,000.
Bitcoin (BTC) rose to $84,525 on Saturday, up 10% from this month's lowest level. It remains in the local bear market after a drop of more than 22% from this year's highest level.
At the time of publication, it was traded for just over $84,335.
Bitcoin and other altcoins rose slightly on Friday, reflecting the performance of other assets, such as stocks and gold. The Dow Jones Index rose over 650 points, while the S&P 500 and Nasdaq 100 increased 117 and 450 points respectively. Gold jumped to a record high of $3,010.
Bitcoin prices face potential risks
Bitcoin recovery faces two potential risks and two opportunities. First, there are indications that investors still mean fear. The Fear and Greedy Index has ended the extreme fear zone of 18, but there are still signs that investors are afraid. It remains in the 22 fear zone.
Historically, when indexes are in a greedy zone, bitcoin and other cryptocurrencies do well. The horror explains why the Spot Bitcoin ETF cut its assets by $143 million, bringing weekly outflows to $870 million. They have been leaked for the past five weeks in a row.
Second, technically, Bitcoin formed a cross of death as the weighted moving averages of 50 and 200 days crossed each other. This crossover often leads to a more negative side over time. For Bitcoin, there is still room for retesting the highest level of $73,900 in March 2024.
BTC Price Chart | Source: crypto.news
Potential opportunities for Bitcoin price
For the first opportunity for Bitcoin, investors would be wise to see what the Federal Reserve is reporting after holding its second meeting of the year on March 18-19. The fear of a recession encourages central banks to embrace the incredible tone and suggest more interest rate cuts.
Changes in adjustments by the Federal Reserve are positive for Bitcoin, altcoins and other altcoins.
Another opportunity is for investors to embrace risk-on sentiment and buy stock and crypto market dip. This is because as the stock market value decreases, the most extreme risk of tariffs is priced.
This performance was previously held, including during the Covid-19 pandemic. Investors panicked and sold stocks and crypto in March 2020, and bought the dip as the Fed had such incredible feelings.
