Bitcoin (BTC) Price Fails $90,000 Breakout Test as US Treasury's Stance on Digital Assets Remains Unclear

Bitcoin (BTC) recorded substantial gains earlier in the week, but its momentum faded as resistance near $90,000 proved difficult to breach.

Bitcoin’s price rally stalled at $91,500 on Wednesday as bulls struggled to push the uptrend further. On-chain data shows that whale investors remain hesitant, with large transactions declining amid uncertainty over U.S. trade policy.

Bitcoin (BTC) price failed to rise above a key breakout level of $92,000 on Wednesday, slowing down the cryptocurrency’s recovery from recent lows. The third-largest cryptocurrency, Cardano (ADA), faced rejection at $0.50, and traders anticipated a move towards $0.40.

Bitcoin stalls at $92K as U.S. trade policy hangs in limbo

Bitcoin registered substantial gains earlier in the week as former U.S. President Donald Trump hinted at a possible rollback of tariffs. However, traders remained cautious, awaiting further policy clarity before committing to larger positions.

BTC's price action supports this cautious stance as it struggled to break past the $92,000 level. After surging 10% from a weekly low of $81,480 to reach $91,860, BTC faced strong resistance, leading to a rejection.

This suggests that market participants are reluctant to push higher without confirmation of a favorable regulatory environment or clearer institutional buying trends.

On the other hand, a sustained break above $92,000 could open the door for a swift rally towards $100,000. The lack of follow-through buying pressure despite BTC's recovery from $80,000 suggests that institutions may be awaiting further signals before making aggressive entries.

Institutions may be waiting for an official announcement from the U.S. Treasury regarding its strategy for acquiring Bitcoin and other strategic reserve assets.

Whale transactions down 30% as institutions await upside confirmation

While overall market sentiment is bullish, large investors have taken a wait-and-see approach, contributing to the price stagnation.

On-chain data from Santiment shows a substantial drop in whale transactions, which are Bitcoin transactions exceeding $1 million in value and provide insights into institutional buying trends.

On February 25, the total number of whale transactions was recorded at 3,851. However, as of March 5, that figure has plummeted to 2,517, marking a sharp 30% decline.

This significant decrease in large-volume transactions suggests that institutional investors are refraining from aggressive accumulation until they receive more clarity on market conditions.

The declining whale activity provides a key reason why Bitcoin has struggled to break past the $92,000 resistance level despite bullish sentiment and an overall uptrend in BTC's price.

Traders and long-term investors appear to be waiting for either a strong breakout signal or a major macroeconomic catalyst to pour larger capital into the market.

If whale transactions remain subdued, Bitcoin’s rally may continue to face resistance at the $92,000 mark, potentially leading to a period of price consolidation between $85,000 and $92,000.

However, should institutional confidence return—especially with an official U.S. Treasury confirmation of BTC acquisitions—Bitcoin could quickly surge past $100,000.

A sustained decrease in whale transactions could also signal a cooling-off period for Bitcoin, which might prompt short-term traders to take profits.

If institutions re-enter the market with renewed buying activity, it could set the stage for a fresh rally toward six-figure price levels.

Stay tuned to Benzinga for more crypto market coverage.

Image: Oleksii Fedorenko on Unsplash