New Delhi, March 29 Bitcoin weakened to around USD 66,000 after a period of negative sentiment over the past few sessions, breaking below both its 200-day moving average and year-to-date average – levels closely watched by traders as indicators of market strength.
The breach below these technical support levels signals near-term downside pressure, largely driven by macro risk-off sentiment and tighter liquidity conditions. However, the decline has so far been orderly rather than panic-driven, with prices stabilizing in the mid-USD 60,000 range.
Analysts say the market is now at a critical juncture. While the breach of key averages suggests caution, expectations of a rebound towards the USD 68,000 level in the coming week indicate that underlying demand remains intact.
The near-term outlook remains highly sensitive to global cues, with Bitcoin continuing to track broader financial conditions and investor risk appetite.
Last week, the cryptocurrency market swung from steady gains to brief volatility before stabilizing, with Bitcoin recovering after a dip triggered by global risk-off sentiment.
Bitcoin fell to as low as USD 67,000-USD 69,000 amid tightening financial conditions and weakness in global equities, particularly in Asia, according to WazirX – one of India's largest cryptocurrency exchanges.
Easing geopolitical tensions, including signals of potential negotiations between the United States and Iran, led to a 5-6 per cent drop in oil prices, helping reduce macroeconomic pressure and stabilize broader risk assets, including cryptocurrencies.
Institutional interest remained firm. Asset manager BlackRock reiterated its focus on Bitcoin and Ethereum, while MicroStrategy's USD 44 billion capital plan for Bitcoin accumulation underscored continued long-term conviction in the asset.
Bitcoin has traded within a broad USD 50,000-USD 70,000 range for about 50 days, a pattern analysts interpret as an accumulation phase.
Market participants said macro pressures are easing but sentiment remains fragile and sensitive to geopolitical developments. While Bitcoin's ability to hold near USD 70,000 indicates strong demand absorption, markets continue to be driven by global liquidity conditions.
Analysts caution that the current consolidation phase, despite underlying support, may see sharp swings, urging retail investors to remain cautious on leverage.