- Bitcoin faces strong resistance at $95K, with 726K BTC held by 1.2M investors.
- Bearish momentum persists as RSI nears oversold and MACD remains negative.
- Rising liquidity could push Bitcoin to new highs, but a slowdown risks declines.
The cryptocurrency market is experiencing fluctuations, with Bitcoin navigating a crucial supply barrier at $95,000. According to analyst Ali Martinez, approximately 1.2 million investors hold 726,000 BTC at this level.
This concentration of holdings creates significant resistance, making it a critical hurdle for Bitcoin’s upward momentum. The price of Bitcoin recently peaked above $100,000 before retracting to $82,427. As of press time, Bitcoin trades at $82,655.98, with a 0.05% increase over the past 24 hours but a 9.58% decline over the past seven days.
Bitcoin’s Supply and Resistance Zones
Martinez’s “In/Out of the Money Around Price” analysis reveals that Bitcoin’s supply distribution presents both opportunities and challenges. With 28.59% of supply “In the Money” (752.43K BTC) and 71.32% “Out of the Money” (1.88M BTC), the price struggles to gain momentum.
The biggest supply barrier for #Bitcoin is at $95,000, where 1.2 million investors hold 726,000 $BTC. pic.twitter.com/1SFTiapxcY
— Ali (@ali_charts) March 13, 2025
While strong resistance looms at $95,000, Bitcoin has established key support levels at $70,000 and $60,000. If Bitcoin fails to break through resistance, a retest of lower support zones remains possible.
Technical Indicators Signal Bearish Momentum
Bitcoin’s technical indicators suggest weak momentum. The Relative Strength Index (RSI) currently sits at 40.42, near the oversold threshold of 30. This suggests a potential rebound if selling pressure continues.
Additionally, the Moving Average Convergence Divergence (MACD) histogram remains negative, confirming bearish momentum. The MACD line is below the signal line, reinforcing the current downtrend. However, if a crossover occurs, Bitcoin may shift toward bullish territory.
Macroeconomic Factors Influence Market Sentiment
The recent release of February’s Consumer Price Index (CPI) by the U.S. Labor Department significantly impacted market sentiment. Headline CPI rose 0.2% month-over-month, falling short of the expected 0.3% increase.
Similarly, Core CPI increased by 0.2% month-over-month, again below projections. Year-over-year, headline CPI grew by 2.8%, while core CPI rose by 3.1%, both underperforming expectations.
These softer-than-expected inflation readings fueled optimism for potential interest rate cuts by the Federal Reserve. Historically, monetary easing has benefited risk assets like Bitcoin, as investors seek higher returns in alternative markets. If the Fed signals a shift toward a more accommodative policy, Bitcoin may experience renewed bullish momentum.
Liquidity Trends and Bitcoin’s Future Outlook
The M2 Global Liquidity Index is expanding, a trend that has historically driven Bitcoin’s price growth. Martinez notes that Bitcoin often lags behind liquidity expansions before catching up.
Global liquidity is expanding fast! If past trends hold, #Bitcoin $BTC might catch up around mid-April. pic.twitter.com/1tLVIdkKZf
— Ali (@ali_charts) March 13, 2025
If liquidity continues to rise, Bitcoin could reclaim its recent highs and push toward new all-time highs by mid-April. However, if liquidity slows, Bitcoin might struggle to maintain its current levels and could revisit lower support zones.
