Bitcoin Faces Significant Price Fluctuations Amid Economic Uncertainty

Bitcoin (BTC) recently experienced a sharp 10% price fluctuation over the past 24 hours, primarily influenced by President Donald Trump’s new “Strategic Bitcoin Reserve” initiative and rising concerns regarding inflation. With long-term holders starting to liquidate their investments, BTC has found it challenging to maintain its value above $92,000, further aggravated by a staggering withdrawal of $134 million from exchange-traded funds (ETFs). Analysts are now predicting that Bitcoin might dip to around $82,000 due to these ongoing economic pressures.

Why Are Long-term Holders Selling BTC?

The recent decline of Bitcoin to $84,600 can be largely attributed to increased selling pressures from long-term investors. Data from Santiment suggests an astounding 450% rise in the BTC Age Consumed metric—an indicator of how long Bitcoin has remained unused—which has surged to an unprecedented 15.9 billion. This significant trend signals a pivotal shift in behavior among traditional investors who generally prefer to hold onto their assets over the long term.

What’s Next for Bitcoin Prices?

At present, Bitcoin is trading within a support level of $78,258 and a resistance level of $99,475, according to the Donchian Channel indicator. Although there’s been a slight uptick in daily trading volume that has contributed to a rebound from $84,600, the necessary momentum to surpass the $92,000 threshold remains inadequate.

There are signs of sustained selling pressure due to increasing BTC Age Consumed statistics.
Trump’s tax policy announcements, alongside inflation anxieties, are prompting many investors to take profits.
Future price fluctuations will likely hinge on forthcoming inflation data and the prevailing market sentiment.

Market analysis suggests that Bitcoin may be on the verge of testing the $87,000 range soon. However, the Average Daily Range (ADR) currently sits modestly at 1.25, while an estimated $382 million in long positions within the futures market could potentially hinder upward movement. Experts emphasize that for a genuine bullish rally to commence, it is crucial for daily candle closures to exceed $91,200. This scenario underscores the importance of closely monitoring upcoming inflation reports.