Bitcoin failed to sustain a rally above $87k this week

Bitcoin failed to sustain a rally above $87k this week as global monetary pressures eased and mostly traded sideways, stabilizing above $83k.

Global monetary pressures eased this week, causing Bitcoin to fail to sustain a rally above $87k and stabilize above $83k as the total crypto market capitalisation struggled to reclaim the $3 trillion mark.

The crypto market displayed strength with the Fear & Greed Index improving slightly to 31, moving up 4 points from the previous week, although it remained in the fear territory.

While the crypto market sentiment improved, the market saw limited gains this week with seven out of the ten largest tokens trading in the red over the seven days.

Bitcoin price failed to sustain rally above $87k as crypto market struggles to recover $3 trillion mark

Global monetary pressures appeared to ease this week, causing Bitcoin to struggle to sustain a rally above $87k and stabilize above $83k.

The total crypto market capitalisation also faced difficulties in reclaiming the $3 trillion mark, which was lost two weeks ago, pulling back to $2.8 trillion at the last check.

However, there were signs of improvement in the market sentiment. The Fear & Greed Index showed a slight increase, rising 4 points to 31 from last week’s reading, placing it firmly in the fear territory.

Despite this, the crypto market displayed strength with seven out of the ten largest tokens trading in the red over the seven days.

Among the notable movers, altcoins fared better, with several high-cap projects posting double-digit gains on the weekly time frame.

This suggests that traders might be rotating out of Bitcoin and into altcoins, seeking out fresh opportunities for gains in less-exploited sectors of the market.

Why is Bitcoin down this week?

Bitcoin visited lows around $81,000 and highs of $86,500 this week, barely managing to recover last week’s losses.

At the time of writing, it held weekly gains of less than 1%.

Early week volatility cooled slightly after Fed Chair Jerome Powell addressed inflation concerns during a press conference on Wednesday following the Federal Open Market Committee meeting.

He noted that recent tariff increases are expected to delay progress in reducing inflation this year but described these effects as “transitory,” meaning they are likely to be temporary.

In light of these developments, the Fed kept interest rates unchanged. Bitcoin briefly rallied toward weekly highs before correcting over the following 48 hours.

Bearish pressure returned on 20 March after US President Donald Trump’s much-anticipated video appearance at the Digital Asset Summit in New York.

In a 90-second address, Trump reiterated his support for crypto but stopped short of unveiling any new policy moves, disappointing market expectations.

Following Trump’s underwhelming address, $223.13 million in liquidations were over the next 24 hours, with long positions bearing the brunt at $170.71 million.

Analysts at The Kobeissi Letter described the sell-off as a series of “flash crashes” rippling across all risk asset classes.

They attributed the downturn to “sentiment and emotion,” noting that investor confidence has taken a hit as recession fears gain traction.

Will Bitcoin price go up?

Analysts remained mostly bearish regarding Bitcoin’s short-term trajectory with some expecting further correction ahead.

One such bearish outlook came from pseudonymous analyst GDXTrader, who pointed to a dark cloud cover pattern, a classic sign of weakening bullish momentum.

The formation occurs when an open is higher than the prior close, and the price continues to rise to form a new high, only to close lower.

After a strong rally that saw BTC nearly touch the $87,000 resistance, the candlestick pattern suggests that the bulls are encountering difficulties sustaining the upward momentum.

Moreover, CryptoQuant highlighted that Bitcoin’s Bull Score Index has dropped to levels not seen since 2023.

The index tracks how many out of ten key indicators, covering things like network activity, investor profits, demand, and liquidity, are flashing bullish.

With the score hovering around 20, it’s another sign that bearish conditions might stick around for a while.

Current market conditions could lead to a deeper correction towards the $77,000-79,000 range, according to analyst CrediBULL Crypto.

In a recent analysis shared on X, CrediBULL Crypto said Bitcoin saw a “perfect rejection” after testing the $86,000-$88,000 resistance zone, increasing the chances of a move lower.

He pointed out that BTC failed to break through a key supply zone, which could now open the door for a drop toward the $77,000-$79,000 support range.

This area has previously triggered strong rebounds, but if it fails to hold, the correction could deepen further—potentially dragging prices down to the $65,000-$74,000