Why is Bitcoin ( $75,321.00 ) price stuck?

Bitcoin ( $75,321.00 ) (BTC) price has been consolidating within a roughly $5,500 range since March 9 as the $84,000 level represents stiff overhead resistance.

Data from Cointelegraph Markets Pro and Bitstamp shows BTC price oscillating between $78,599 and $84,000, as shown in the chart below.

Key reasons why Bitcoin ( $75,321.00 ) price remains flat today include:

• Trump’s trade war tensions causing uncertainty in the market.

• Weakening demand for Bitcoin ( $75,321.00 ) and neutral funding rates.

• BTC price remains pinned below the 200-day SMA.

Broader economic uncertainty, weakening demand

Bitcoin ( $75,321.00 ) ’s price stagnation is partially due to the broader economic and geopolitical factors that are currently at play. 

What to know:

• Trump’s new policies, such as his proposed trade tariffs on Mexico and Canada, have unnerved the market.

• Investors, wary of inflation concerns and a potential tariff war, are avoiding risk assets like Bitcoin ( $75,321.00 ) .

• As Cointelegraph recently reported, Bitcoin ( $75,321.00 ) ’s rally post-Trump’s November election has lost steam amid a weakening global economy. 

• This has resulted in weaker demand for Bitcoin ( $75,321.00 ) , according to Glassnode.

For instance, the cost basis of 1w–1m short-term holders flattened out above that of the longer-term holders (1m–3m) in Q1, “marking an early sign of weakening demand in the immediate term.”

Related: Bitcoin ( $75,321.00 ) price drops 2% as falling inflation boosts US trade war fears

Bitcoin ( $75,321.00 ) ’s drop below the $95,000 level saw the 1w–1m cost basis slide below the 1m–3m cost basis, “confirming a transition into net capital outflows.”

Glassnode noted:

“This reversal indicates that macro uncertainty has spooked demand, reducing new inflows… and suggests that new buyers are now hesitant to absorb sell-side pressure, reinforcing the shift from post-ATH euphoria into a more cautious market environment.”

Until the current trend changes due to macroeconomic tailwinds, such as Fed rate cuts, Bitcoin ( $75,321.00 ) could struggle to break out of the current range, leaving it vulnerable to pullbacks toward $70,000.

Another clear signal of Bitcoin ( $75,321.00 ) ’s stagnation is in the perpetual futures funding rates. BTC funding rates, which reflect the cost of holding long or short positions in crypto futures, are hovering close to 0%, indicating increasing indecisiveness among traders.

Without speculative fuel, Bitcoin ( $75,321.00 ) is struggling to move in either direction, leaving its price stuck in a tight range as traders wait for the next catalyst.

Bitcoin ( $75,321.00 ) price faces stiff resistance on the upside

Bitcoin ( $75,321.00 ) also trades below key resistance areas, as shown in the chart below:

• On March 9, BTC fell below the 200-day simple moving average (SMA) at $83,736.

• This trendline has stifled the latest efforts for a sustained recovery.

Popular crypto analyst Daan Crypto Trades says that the 200-day SMA at around $83,700 and the 200-day EMA at $86,000 are key levels as they are “solid indicators of the mid/long term trend and overall strength of the market.”

In other words, failure to produce a decisive close above the 200-day SMA and flipping it into a new support level could lead to a longer consolidation period for Bitcoin ( $75,321.00 ) price.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.