Bitcoin (BTC) Price Prediction: Will March Trigger a Bullish Comeback?

Bitcoin price has dropped below the $96,000 levels, which can be seen as bearish sentiment at the beginning of a week.

Bitcoin price slipped below the key $96,000 levels on Monday, signaling bearish sentiment at the start of the week. The market leader’s price has oscillated between a low of $93,340 and a high of $99,508 so far this week. However, BTC closed the week at $96,262, notching a 0.14% gain from the opening price.

But some factors are proving to be volatile, and this has pushed down the price of Bitcoin. BTC is currently trading at $95,774 after dipping 0.57% intraday.

The question that still bothers investors is whether the Bitcoin price will hold above the $94K support or slide into the $90K zone.

Bearish pressure mounts on the daily chart

Bitcoin’s daily chart shows strong bearish pressure dominating its price action. The asset trades above the $95,000 level but faces rejection from an overhead trend line. Additionally, resistance near $98,500 and the 50% Fibonacci retracement level has influenced BTC’s recent decline.

Despite this, Bitcoin price has shown strength near the $95,000 level, suggesting a possible rebound. In support of this, the Money Flow Index (MFI) shows increasing inflows after bouncing back from oversold levels. Over the past 4 hours, Bitcoin price has gained 0.26%, with multiple rejections at lower price levels.

If BTC price continues on its current trajectory, it could challenge the 38.2% Fibonacci retracement level at $96,703. A bullish breakout from this zone could propel Bitcoin price to the $98,500 resistance. Further gains would bring it closer to the 50% Fibonacci level, a key area in determining trend direction.

Conversely, if Bitcoin price fails to hold the $95,000 level, it could lead to a lower price level. Its breakdown would bring its price to the 23.6% Fibonacci retracement level at around $94,393. In the event of stronger bearish pressure, it will not take long for the BTC price to decline further to $90,000.

Bitcoin ETFs see massive outflows

Interestingly, the U.S. spot Bitcoin ETF market experienced a huge outflow, adding to the bearish sentiment. According to SpotOnChain, Bitcoin ETFs recorded a total outflow of $552.5 million last week. The four trading days saw consistent outflows, contributing to an 8% decline in BTC’s price.

This decline resulted in a weekly Doji candle, signaling market indecision. The Doji pattern often reflects indecision among traders, which means that Bitcoin price could move sharply in either direction.

Key technicals show mixed signals

Technical indicators suggest that Bitcoin’s next move remains uncertain. The Relative Strength Index (RSI) currently stands at 44, indicating neutral momentum. If the RSI moves above 50, it could confirm renewed bullish strength. However, if it falls below 40, it would signal increased selling pressure.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator remains below the signal line, suggesting a bearish trend. A bullish crossover in MACD could indicate the beginning of an uptrend. Traders should watch these indicators closely for confirmation of the next move.

Will March spark a bullish comeback?

Despite the ongoing decline, historical trends suggest a potential bullish rebound. Data from Coinglass shows that Bitcoin price has posted strong returns in March over the past four years. This pattern raises hopes for a recovery in the coming weeks.

If Bitcoin price follows this historical trend, the next rally could breach the 50% Fibonacci resistance level. A confirmed breakout could push Bitcoin to the 78.6% Fibonacci level at $103,393. Beyond this, BTC could aim for the supply zone around $108,000.

At the time of writing, Bitcoin price trades at  $95,556.93 and has been down by 0.63% in the last 24 hours. Market capitalization reached $1.89 trillion while the daily trade volume increased by 54.22% to $24.13 billion.

The views and opinions expressed in this article by the author or any people mentioned are for informational purposes only and do not constitute investment, financial, or other advice. Trading or investing in cryptocurrency assets carries a risk of financial loss.