BTC Momentum Wanes—What’s Next for Bitcoin’s Price?

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• Bitcoin’s price is experiencing significant uncertainty, fluctuating between $78,000 and $88,000, with short-term holders facing losses and long-term holders entering an accumulation phase.
• Technically, Bitcoin is testing key support and resistance levels, including its 200-day EMA and a descending trendline, with a potential breakout towards $90,000 or a decline towards $78,258.

Bitcoin’s market price has put investors and market pundits in a precarious situation as traders remain uncertain about its next move. As of the time of press, the prime digital asset is swapping hands with $86,326.35 after a 1.02% decline in the past 24 hours.

Bitcoin’s technical indicators are not helping the case as the Relative Strength Index (RSI) indicates indecisiveness, while on-chain data from Glassnode suggests that BTC is trading in a range-bound market. The declining magnitude of profit-and-loss-taking events further underscores a weakening demand profile.

Conducting an in-depth analysis, Glassnode’s latest “Forging Long-Term Holders” report shows that Bitcoin is currently fluctuating between $78,000 and $88,000. As per the report, short-term holders are experiencing considerable financial strain. Experiencing discomfort with the current situation, a large percentage of their assets is below their purchase price.

Gauging the magnitude of the situation, long-term holders are in a rather mildly-safe zone. As per the glassnode analyst, Long-term holders are now entering an accumulation phase, potentially resulting in their total holdings expanding in the near future.

Jumping into the matter, QCP have analyzed Bitcoin’s movement and according to the team, macroeconomic and political uncertainties have greatly played a role in BTC’s price movement.

The lack of clarity regarding U.S. trade policies, particularly Trump’s proposed tariff measures on the automobile industry, adds to market uncertainty. Analysts predict that this could result in further sideways volatility in the near term.

US Senator Elizabeth Warren Raises Concerns Over Stablecoin Bill

Jumping into the political arena, Senator Warren has been a vocal figure especially concerning digital assets. In her recent statement, Elizabeth voiced out dissatisfaction concernig the recently approved stablecoin bill.

She took the stage warning that the legislation could pave the way for figures like former President Donald Trump and Tesla CEO  and who is also the leader of the D.O.G.E department to gain control over people’s money.

Warren took to social media, stating,

This is Donald Trump’s latest grift to enrich himself. Congress should step up and fix the current stablecoin bill moving through the Senate that will make it easier for Trump – and Elon Musk – to take control of your money.

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS Act), passed by the Senate Banking Committee on March 14, establishes licensing and regulatory requirements for stablecoin issuers. While this bill is expected to enhance regulatory clarity, some experts believe it could ultimately boost Bitcoin’s adoption by increasing trust in the crypto ecosystem.

Bitcoin’s price action over the past week has been testing crucial support and resistance levels. BTC broke above its 200-day Exponential Moving Average (EMA) at $85,570 on Sunday, climbing 4.45% until Monday. However, it later stabilized around $87,000 and briefly retested the 200-day EMA on Wednesday.

At the time of writing, BTC is trading slightly above this support level and is approaching a descending trendline that has been in place since mid-January. A successful breakout and close above this trendline could push BTC toward the psychological $90,000 resistance level.

Further bullish momentum could see a rally to the March 2 high of $95,000. Conversely, if BTC faces rejection at the descending trendline and closes below the 200-day EMA, a decline toward the $78,258 support level could be on the horizon.