Bitcoin (BTC) Price Dips Below €78,000 as Market Braces for Potential Crash

The Bitcoin price has once again dipped to levels reminiscent of five days ago, hovering just below €78,000. Despite some fluctuations earlier this week

The price of Bitcoin has fallen again, this time dipping to levels last seen five days ago as the world’s largest cryptocurrency faces resistance and traders factor in the potential for further declines.

Now trading just below €78,000, Bitcoin is showing signs of struggle despite some recovery earlier this week from lows above just €70,000. As macroeconomic trends continue to influence the market, analysts are preparing for the possibility of even lower levels, with some suggesting a drop towards €65,000.

Earlier in March, Bitcoin broke through the critical resistance at the psychological price level of $90,000 (around €82,000) before falling to a low of just above $70,000 (about €64,000). The recovery from this low has been difficult, with the price failing to break through the crucial resistance around $90,000 (nearly €82,000).

Currently, Bitcoin is valued at around $85,880 (around €79,689). This represents a 3.16% decrease over the past month.

At present, Bitcoin is being traded at approximately $85,880 (roughly €79,689). In doing so, the cryptocurrency has experienced a 3.16% decline over the past month.

According to analysts from CryptoQuant, the market sentiment is at its least bullish since January 2023. The Bull Score Index, created by the analysts, stands at 20, which is a relatively low score. For the market to show signs of strength, this index will need to rise above 40 for an extended period. Lower scores, such as the current one, could indicate further weakness in the market.

The cryptocurrency market has been grappling with persistent inflation, which is a key factor that the Federal Reserve considers when making decisions about interest rates.

A new report from the U.S. Bureau of Economic Analysis revealed that the Personal Consumption Expenditures (PCE) price index, a primary measure of inflation closely followed by the Fed, increased by 0.3% in February compared to the previous month. Economists polled by Dow Jones had anticipated a smaller rise of 0.2%.

However, the core PCE, which excludes volatile food and energy prices, experienced an increase of 0.4%, exceeding economists’ expectations of 0.3%. On an annual basis, the core PCE went up by 2.8%, which was slightly higher than the anticipated 2.7%.

This ongoing inflation might discourage the Federal Reserve from cutting interest rates anytime soon. Such a move could have a significant impact on risk assets, including Bitcoin.

The recent increase in the PCE price index is noteworthy given that the Consumer Price Index (CPI), another major inflation indicator, showed signs of slowing down in February.

This divergence between the CPI and PCE might lead to varied interpretations among market analysts regarding the potential timeline for interest rate cuts by the Federal Reserve.

As the macroeconomic trends continue to influence the cryptocurrency market, investors are keeping a close eye on the latest developments and how they might affect the price of Bitcoin and other digital assets.

The crypto market is also being impacted by the actions of billionaire former President Donald Trump, who is known for his unpredictable decisions and behavior.

Earlier this week, Trump announced his candidacy for the 2024 presidential election, and his proposals, such as imposing trade tariffs, have been placing immense pressure on the economy and financial markets.

Following Trump’s announcement, well-known financial expert and chart analyst Peter Brandt expressed a bearish outlook, suggesting that Bitcoin could crash down to $70,000 (about €65,000).

"Not an unreasonable expectation," Brandt stated in a March 28 post on X, formerly Twitter, as he shared a chart of Bitcoin's price movements.

Despite the bleak outlook, a faction of traders remains optimistic and hopeful for a rebound in the market.

A significant number of Bitcoin bulls are active, especially within communities like the Bitcoin Bull token project, which aims to accompany Bitcoin on its journey to a price of $1 million. This project has already managed to secure over $4 million in investments during its presale.

On the other hand, the overall trend has shown some upward movement.

According to industry data, Bitcoin's price recently rose from a local low of around $77,000 to approximately $85,000. This increase has sparked optimism for a potential breakthrough towards $95,000. However, analysts are still warning about the possibility of a correction.

Moreover, Bitcoin miners are holding onto a staggering 1.81 million BTC, valued at approximately $159 billion, and they have not been engaging in any significant selling