Bitcoin Must Reclaim Key 2025 Level to Avoid Further Declines, Research Suggests
Bitcoin (BTC) approached $90,000 on March 24, driven by positive market sentiment and easing trade tariff concerns. However, analysts warn that BTC must reclaim critical support levels to avoid further price declines.
Bitcoin Gains Nearly 3% Amid Market Relief
Bitcoin reached a high of $88,772, marking its strongest performance since early March. This upward momentum coincided with broader market optimism, as the S&P 500 and Nasdaq Composite rose 1.6% and 2%, respectively. The market reacted positively to news that the U.S. government plans to implement sector-specific tariffs rather than blanket tariffs, easing investor concerns.
- BTC/USD hit $88,772, highest since March 7.
- S&P 500 and Nasdaq indices rose significantly on tariff news.
- Rumors of the U.S. government potentially using gold reserve profits to buy Bitcoin further boosted sentiment.
U.S. Gold Reserve Rumors Fuel Bitcoin Optimism
Speculation increased after Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, suggested the U.S. could use profits from gold reserves to purchase Bitcoin. Analyst Keith Alan noted this news provided “hopium” to speculators, highlighting the strategic timing given gold’s recent all-time highs and Bitcoin’s ongoing correction.
Critical Levels Bitcoin Must Reclaim
Keith Alan, co-founder of Material Indicators, emphasized two crucial levels Bitcoin must reclaim to sustain bullish momentum:
- The 21-day simple moving average (SMA), currently around $84,674.
- The 2025 yearly open level near $93,300.
Alan stressed that reclaiming these levels as support is essential to confirm a bullish trend. Failure to do so increases the risk of Bitcoin retesting recent lows.
Summary and Key Points
- Bitcoin nears $90,000 amid easing tariff concerns and positive market sentiment.
- Rumors of U.S. gold reserve profits being used to buy Bitcoin boost optimism.
- Analysts highlight the importance of reclaiming the 21-day SMA and the 2025 yearly open to avoid further declines.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
