Bitcoin Battles $90K Resistance Amid Market Uncertainties

Bitcoin, the world's most recognized cryptocurrency, is currently grappling with the $90,000 resistance level, sparking concerns among investors and analysts about its short-term trajectory. Various factors, including profit-taking behaviors, macroeconomic uncertainties, and recent security breaches, are hindering the vision of a positive bullish expectation.

After reaching an all-time high of $109,000 earlier this year, Bitcoin has since experienced a significant downturn. The cryptocurrency recently fell below $90,000, a crucial psychological and technical resistance level, indicating potential challenges ahead. This sharp decline can be attributed to investors capitalizing on profits from Bitcoin's remarkable surge over the past months, a common behavior in the crypto market typically followed by short-term price dips.

The broader economic environment is also impacting Bitcoin's price activities. The U.S. dollar has been on a steady rise, with the dollar index (DXY) increasing by 2.7% to 106.78, reaching a six-month high. This dollar strength is partly due to market expectations of financial tightening and potential inflationary pressures from recent policy decisions. A stronger dollar often leads investors to reevaluate their positions in riskier assets like cryptocurrencies, exerting downward pressure on Bitcoin's price.

Adding to the market's apprehension is the recent security breach involving the cryptocurrency exchange Bybit. Hackers, reportedly linked to North Korea's Lazarus Group, executed a $1.5 billion heist, marking one of the largest crypto thefts to date. This incident not only shook investor confidence but also led to a broader market selloff. Bitcoin's value plummeted to $60,000 following the hack, highlighting the market's sensitivity to security vulnerabilities within major crypto platforms.

In light of these developments, traditional safe-haven assets like gold have taken over Bitcoin. Since President Donald Trump's inauguration on January 20, 2025, gold has appreciated by nearly 8%, while Bitcoin has declined by 24% from its peak. Investors are gravitating towards gold amid economic and geopolitical uncertainties, viewing it as a more stable store of value compared to the highly volatile cryptocurrency market.

Market analysts are divided on Bitcoin's near-term prospects. Some caution that if Bitcoin fails to maintain support at current levels,