Bitcoin (BTC) market participants are positioned for a fresh BTC price dip, which could even form new multimonth lows.

PCE week coincides with the last full trading week of March, and risk assets are showing a hint of optimism.

Bitcoin (BTC) price is heading into the last full trading week of Q1 2025 with a threat of new multi-month lows emerging as trader sentiment diverges from improving technicals.

PCE week coincides with the last full trading week of March, and risk assets are showing a hint of optimism as a four-week losing streak comes to an end for US stocks.

When it comes to BTC price strength, RSI is increasingly signaling bullish continuation in several interesting ways.

Short-term Bitcoin holders are showing signs of serious unrealized losses, while stablecoin stocks on Binance hit record highs in what research hopes is a positive signal for investor confidence.

Bitcoin traders see downside reversal next

Bitcoin is nearing a rematch with two-week highs as the week gets underway, data from Cointelegraph Markets Pro and TradingView shows.

Among traders, however, the mood remains cautious.

Bulls have a lot to do in order to spark a reliable uptrend, they warn, and despite being up nearly 15% versus its multimonth lows from earlier this month, BTC/USD may well see a fresh drop.

“Market sentiment has been restored after hitting the short liquidations at $87.1k. Now, it could be a good opportunity for the MM to shake out the market again,” popular trader CrypNuevo wrote in his latest X analysis.

BTC liquidity chart. Source: CrypNuevo/X

CrypNuevo was looking lower at times, with downside liquidity nearer $80,000 a potentially lucrative target that he advised followers to “mind.”

BTC/USDT 1-hour chart. Source: CrypNuevo/X

Fellow trading account HTL-NL described the scenario on shorter timeframes as “not looking good” for bulls, eyeing $90,000 as a ceiling before a reversal kicks in.

Even among its more ardent supporters, the specter of the mid-$70,000 ranges still lingers. Arguing that BTC/USD could yet advance to new all-time highs of $110,000, former BitMEX CEO Arthur Hayes predicts a 30% crash from there.

🚨 LATEST: BitMex co-founder Arthur Hayes predicts Bitcoin will hit $110k before retesting $76.5k, claiming Fed is switching from QT to QE for treasuries and dismisses tariff concerns, citing "transitory inflation." pic.twitter.com/VX3ORPyvii

“Again I still think we go lower before we make a run back to 88-90k resistance retest,” trader Roman meanwhile added on short timeframes.

Earlier, Cointelegraph reported on several key support trend lines in need of a reclaim as part of any BTC price recovery.

These included the 200-day simple and exponential moving averages, currently at $85,050 and $85,500, respectively.

PCE week comes in the shadow of tariffs

The last full trading week of Q1 2025 gets underway with a hint of relief for risk assets as US stocks end a four-week losing streak.

A wild ride for equities since the year began is finally coming to a close, and with it an even more volatile period for Bitcoin and crypto.

That said, more surprises could come before the quarterly candle close.

March 28 is the main date in traders’ diaries this week, hosting the February print of the US Personal Consumption Expenditures (PCE) index.

Known to be the Federal Reserve’s “preferred” inflation gauge, PCE came in below expectations last month, with the upcoming numbers broadly expected to be identical.

Citing the Fed’s own internal models, financial market research firm Bespoke saw positive developments for risk-on sentiment developing.

“The Fed's inflation model currently estimates that headline and core for both CPI and PCE will all have 2-handles by March,” it observed last week.

Fed target rate probabilities for June FOMC meeting. Source: CME Group

The latest estimates from CME Group’s FedWatch Tool meanwhile show market odds for interest rate cuts remaining at zero, with the June meeting of the Federal Open Market Committee (FOMC) as the likely timeframe for financial conditions to ease.

The US government’s reciprocal tariff arrangement, due to go live on April 2, could temper any optimism.

At a press conference following the latest FOMC meeting last week, Fed Chair Jerome Powell himself cited tariffs as a “driving factor” in increasing inflation expectations.

“You may have seen that goods inflation moved up pretty significantly in the first two months of the year. Trying to track that back to actual tariff increases, given what was tariff and what was not, very, very challenging. So, some of it,” he said.

RSI signals tease key BTC price breakouts

When it comes to early bull market continuation signals,