Bitcoin (BTC) is struggling to maintain momentum as it faces resistance near $84,000, with analysts warning of a potential drop to $73,000 before a larger move upward.
Despite softer U.S. inflation data temporarily pushing BTC above $84,000, broader market risks—including Mt. Gox Bitcoin transfers and liquidity concerns—are weighing on sentiment.
Crypto analyst EGRAG CRYPTO suggests BTC could hit $73K by April 1st, citing a bearish engulfing candle on the 3-day chart. According to his analysis, BTC could first test $80,500, before a deeper drop toward $73,000 within a crucial blue channel.
While expectations of a Federal Reserve rate cut support long-term bullish sentiment, Bitcoin remains vulnerable to short-term selling pressure. If key support levels fail, BTC could see further downside before a recovery phase.
Traders are closely monitoring volume and institutional flows as Bitcoin approaches a critical price zone.
Soft Inflation Data Boosts Bitcoin – But Will It Hold?
According to the Bureau of Labor Statistics, U.S. CPI rose 0.2% in February, below the forecasted 0.3%, marking a slowdown from January’s 0.5%.
On a year-over-year basis, CPI came in at 2.8%, slightly under expectations of 2.9%. Core CPI, which excludes food and energy prices, also eased to 0.2%, reinforcing the narrative that inflationary pressures are cooling.
This data has fueled speculation that the Federal Reserve may cut rates sooner than expected to support economic growth.
Ahead of the CPI release, markets had already priced in an 85% probability of a Fed rate cut by June, with a 40% chance for a May cut. The softer CPI print strengthened this expectation, prompting a positive reaction across risk assets.
Following the CPI report, Bitcoin briefly touched $84,100, while Nasdaq 100 futures jumped 1.5%. However, broader market sentiment remains fragile, given recent volatility in both crypto and equities.
Mt. Gox Bitcoin Transfers Could Trigger Market Turmoil
In addition to macroeconomic factors, Mt. Gox’s Bitcoin movements are raising new concerns. The defunct exchange, which has been in the process of repaying creditors since its 2014 hack, transferred 11,500 BTC (worth $905 million) to an unmarked wallet.
This follows a similar transfer last week, sparking fears that further large-scale distributions could weigh on Bitcoin’s price.
While these movements are linked to creditor repayments, the market is closely watching the fate of Mt. Gox’s remaining 35,900 BTC (valued at $2.8 billion). If large amounts are liquidated, Bitcoin could face additional downside pressure.
Traders are watching whether creditors will sell or hold their BTC, which could dictate price action.
Bitcoin’s Next Move: Breakout or Breakdown?
Despite BTC’s recent jump above $84K, uncertainty remains. The next key macro event is Thursday’s Producer Price Index (PPI) report, which will provide additional insight into inflation trends.
Resistance at $84,400: BTC needs a strong close above this level to confirm a bullish breakout.
Support at $78,500: A break below could accelerate a move toward $75,200 and possibly $73,000.
Market Sentiment Remains Cautious: Traders are watching volume trends and institutional flows for confirmation of trend direction.
For now, Bitcoin’s rally is being tested, and the coming days will determine whether it can sustain momentum or face another leg down to $73K.
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The post Bitcoin Faces ‘Final Leg Down’ to $73K – Here’s What Could Happen Next appeared first on Cryptonews.
