Sensationalist Sentiment Continues to Fuel Misleading Crypto Narratives
Bitcoin (BTC) price remains trapped in a tight trading range between $82,400 and $85,300 since March 14, as conflicting headlines and macroeconomic uncertainty keep traders cautious and markets indecisive.
Why is Bitcoin Price Stuck?
Bitcoin’s price action has been flat due to several key factors:
- Unpredictable US economic policies.
- Lack of fresh capital entering the market.
- Technical setups limiting price movements.
Trade War Fears Offset Pro-Bitcoin News
Bitcoin remains range-bound as bullish and bearish news clash, creating uncertainty among traders.
Bullish signals include:
- The Federal Reserve maintaining interest rates at 4.25%–4.50% and signaling looser monetary policy ahead.
- Fed Chair Jerome Powell describing tariff-driven inflation as “transitory,” briefly boosting market sentiment.
- President Trump declaring the US the “undisputed Bitcoin superpower,” pushing pro-crypto policies.
- MicroStrategy adding 130 BTC, bringing its total holdings to 499,226 BTC.
- Senator Cynthia Lummis proposing selling US gold reserves to acquire 1 million BTC over five years.
Bearish signals include:
- The Fed raising its 2025 inflation forecast to 2.8% and cutting GDP growth expectations, signaling stagflation risks.
- Bitcoin’s post-FOMC breakout quickly reversing, indicating weak market conviction.
- Ongoing trade tensions and tariff uncertainty weighing on market sentiment.
- A European Central Bank official warning Trump’s pro-crypto stance could trigger a global financial crisis.
Shrinking Liquidity Stagnates Bitcoin Market
Declining liquidity and speculative activity are further restricting Bitcoin’s price movements:
- Realized Cap growth slowed significantly to +0.67% per month, down from 13.2% in December, indicating weak capital inflows.
- Short-term trader activity (Hot Supply) has dropped over 50%, reflecting reduced speculative trading.
- Exchange inflows have fallen by 54%, from 58.6k BTC/day to 26.9k BTC/day.
- These metrics suggest the market is shifting from profit-driven speculation to neutral equilibrium, limiting volatility.
BTC Price Trapped Inside Ascending Triangle Pattern
Technical analysis shows Bitcoin consolidating within an ascending triangle pattern:
- Price is stuck between horizontal resistance and ascending trendline support.
- Recent breakout attempts have failed, highlighting market indecision.
- An ascending triangle typically signals a bullish reversal if price breaks above resistance.
If Bitcoin breaks upward, the technical target for April is approximately $91,965. Conversely, a breakdown below support could push BTC down to around $77,635.
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.
