Bitcoin’s Epic Struggle: Will It Ever Break Free from $85K? 😂💸

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Ah, the elusive Bitcoin (BTC), that capricious creature of the digital realm! On the fateful day of March 17, it once again floundered in its attempts to breach the formidable resistance of $85,000. Since the 12th of March, our dear BTC has danced around daily candle highs, teasing us with figures between $84,000 and $85,200, yet it remains shackled, unable to close above the meager $84,600. Such drama! 🎭

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Yet, the market seems to believe that any bearish price action from unchanged interest rates has already been factored in. How very clever of them! 🧐

Thus, all eyes are on Jerome Powell, the esteemed chair of the US Fed, as he prepares to deliver his speech during the FOMC meeting. Given the recent data, one might expect a hawkish tone from Powell. Here’s why:

  • The Consumer Price Index (CPI) stands at 2.8%, still above the Fed’s 2% target, while the Personal Consumption Expenditures (PCE) price index hovers around 2.5%-2.6%. Although CPI dipped lower than anticipated last week, it hardly inspires thoughts of immediate rate cuts. 📉

  • Unemployment remains delightfully low at 4.1%, with an annual GDP growth of 2.3% in Q4 2024, suggesting that the economy is not in dire need of a stimulus. How quaint! 🏦

Meanwhile, Polymarket has declared a 100% chance that the US Federal Reserve will wrap up quantitative tightening (QT) by April 30, which could pave the way for a rate cut as early as this summer. 🌞

Key Bitcoin Price Levels to Watch—Or Not! 😏

For Bitcoin to ascend to greater heights, it must transform the $85,000 resistance into a supportive embrace, aiming for the lofty $90,000. But first, BTC/USD must reclaim its position above the 200-day exponential moving average (orange line) on the 1-day chart. Alas, it fell below this crucial EMA on March 9 for the first time since August 2024. What a fall from grace! 😱

On a brighter note, renewed demand from spot Bitcoin ETFs could serve as a positive catalyst for the bulls. On March 17, Bitcoin ETFs saw a whopping $274 million in inflows—the largest since February 4. Huzzah! 🎉

However, the bears are not to be underestimated; they will strive to maintain the $85,000 resistance, increasing the likelihood of new lows beneath $78,000. The immediate target below previous range lows is a disheartening $74,000, the previous all-time high

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2025-03-18 15:11