Bitcoin Hovering Above $87K
Bitcoin is hovering just above $87K on Thursday, finding its support. The price skyrocketed and soared 4% by Monday. However, later on the momentum down quickly which led to the price correction as the price became flat and inclined to $87,000 toward the middle of the week.
Although the daily Relative Strength Index is moving upwards, it still lies around 49, quite near the neutral 50 level. Traders are not sure whether to go further or not, as the number is right between 45 and 55, and thus, they do not make strong moves either up or down. The RSI should climb above 50 to give a signal to buy.
Glassnode’s latest analysis draws attention to a range-bound market, where Bitcoin now swings between $78,000 and $88,000. While not dramatic, this zone reflects an ongoing tug-of-war between buyers and sellers, with neither side in clear control.
Source: Glassnode
Long-Term Accumulators vs. Short-Term Strugglers
Short-Term Holders, who usually ride the waves of quick market movements, are seeing red. Many now hold BTC at a loss, and that financial strain might explain the dampened activity across trading desks. Glassnode pointed out this pressure, adding that Short-Term Holders are currently “dominating losses taken.”
But zooming out tells another story. Glassnode’s report also spotted Long-Term Holders quietly stepping back in. Glassnode analysis said:
The Long-Term Holder cohort are transitioning back into a period of accumulation, and we expect their aggregate supply to grow in the coming weeks and months.
The recent recovery is reliant on Bitcoin’s ability to keep the 200-day EMA as the support level. If it succeeds in closing beyond the descending trendline, which has been in place since mid-January, a retest of level at $90,000 becomes an option. After that, eyes turn to March 2 high at $95,000, and if the momentum resumes, this could be the next mark.
Source: TradingView
Politics and Policies Stir the Crypto Pot
On the political front, Bitcoin price is being closely followed with the regulatory conversations taking shape in Washington. The GENIUS Act, approved by the Senate Banking Committee on March 14, sets forth the federal and state guidelines for stablecoin issuers. In the long run, it could lead to more orderly crypto adoption, which analysts believe would be beneficial for Bitcoin’s position in the financial system.
However, US Senator Elizabeth Warren isn’t on board just yet. On Wednesday, she took to social media, warning:
This is Donald Trump’s latest grift to enrich himself. Congress should step up and fix the current stablecoin bill moving through the Senate that will make it easier for Trump – and Elon Musk – to take control of your money.
That political overhang is mirrored in the markets. According to QCP Capital, traders are still waiting for clarity as former President Donald Trump floats new tariffs targeting the auto industry, with an April 2 deadline looming. The uncertainty keeps broader investor sentiment in check, especially when it comes to riskier assets like Bitcoin.
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