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However, BTC rebounded this week, rising 4.33%, as optimism grew over Senator Cynthia Lummis’ Bitcoin Act.
The Bitcoin Act: A Potential Game Changer?
On March 11, Senator Cynthia Lummis reintroduced the Bitcoin Act, proposing that the US government acquire one million BTC over five years, with a 20-year mandatory holding period.
The bill’s progress on Capitol Hill could be a key catalyst for BTC demand. Trump’s election victory and speculation about US government BTC accumulation previously fueled BTC’s rally to a January record high of $109,312.
Investors must closely monitor the Bitcoin Act’s progress in Congress.
BTC Price Outlook: Key Drivers
BTC’s near-term outlook hinges on key macroeconomic events, including US tariff policies, the upcoming Fed interest rate decision, and ETF flow trends.
- Bullish Scenario: ETF inflows and progress on Senator Cynthia Lummis’ Bitcoin Act could offset tariff risks and recession fears, potentially driving BTC beyond its record high of $109,312.
- Bearish Scenario: Opposition to the Bitcoin Act, escalating trade tensions, or a hawkish Fed policy outlook could push BTC toward $70K.
Dive deeper into the influence of macroeconomic data, US crypto policies, and BTC-spot ETF market flows on price action. Follow our analysis and forecasts here to manage crypto-related risks.
Technical Analysis
Bitcoin Analysis
Despite this week’s gains, BTC is in a mixed trend, trading below the 50-day Exponential Moving Average (EMA) but above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.
A break above the 200-day EMA and the $86,263 resistance level could signal a move toward the $90,742 resistance level. If BTC breaks out from the $90,742 resistance level and 50-day EMA, $100k would likely be the next key resistance level.
Conversely, if BTC drops below $80k, the bears could target the March 11 low of $76,642.
With a 14-day Relative Strength Index (RSI) reading of 44.05, BTC may drop to the March 11 low of $76,642 before entering oversold territory (RSI below 30).
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