Bitcoin (BTC) is rising by 0.72% to $83,373,
recovering from Tuesday’s low of $81,112. However, the market appears directionless,
with many traders convinced that the uptrend has come to an end. CryptoQuant
CEO Ki Young Ju warns that Bitcoin’s bull cycle might be over, predicting a
bearish or sideways trend for the next 6 to 12 months based on technical
indicators. Concerns about a potential recession are also weighing on
sentiment, with ARK Invest’s Cathie Wood expressing worries that U.S. President
Donald Trump’s tariff policies could trigger an economic downturn.
Further adding to the negative outlook,
François Villeroy de Galhau, Governor of the Bank of France, criticised Trump’s
support for cryptocurrencies, warning that the U.S. could be paving the way for
a financial crisis by embracing digital assets and non-bank finance. These
concerns are amplified by the current liquidity squeeze in the crypto market.
Bitcoin ETFs continue to see significant
outflows, with IBIT from BlackRock, FBTC from Fidelity, and GBTC from Grayscale
reporting a combined $870.1 million in net outflows last week, following
$326.55 million the previous week. This week’s net outflows stand at $87.2
million, reinforcing the overall negative sentiment.
Looking at the broader picture, this
correction is not unexpected. When Bitcoin approached $100,000, excessive
optimism led retail investors to enter the market with high leverage, making a
pullback inevitable. Any upward movement in Bitcoin’s price is now being seen
as a temporary spike and a selling opportunity.
From a technical standpoint, Bitcoin is
trading above the $81,000–83,000 resistance zone. However, rising uncertainties
could push prices down toward the $71,000–73,000 support range. If no
significant pullback occurs, Bitcoin could target the next resistance at
$91,000–93,000. Even if prices break above this level, triggering a potential
rally toward $150,000–200,000, the prevailing market negativity might prevent
investors from fully embracing it. Some relief could come if the Federal
Reserve adopts a more dovish stance in its upcoming policy meeting on
Wednesday.