Bitcoin Hovers Around $96K as Markets Await Next Move

Bitcoin (BTC) continues to consolidate, trading between $94,000 and $100,000, as markets await clarity on its next move. The flagship cryptocurrency experienced a notable decline on Monday, falling from $96,942 to a low of $95,243 before stabilizing at its current level of $96,280.

Bitfinex's latest report suggests that BTC remains macro-correlated and is displaying greater maturity as a risk asset. The report also highlights that Bitcoin's volatility is at historic lows, with the market remaining directionless due to macroeconomic sentiment and geopolitical tensions.

QCP Capital's report indicates that BTC is back in the middle of its range, with implied volatility continuing to drop. The report notes that the lack of crypto-specific price actions makes price action more dependent on macroeconomic factors, particularly the correlation between BTC and equities. Despite recent macroeconomic uncertainties, crypto implied volatility and the Chicago Board Options Exchange (CBOE) Volatility Index are trading at their lows, and BTC has remained relatively unfazed by recent macroeconomic data.

A research report by Bernstein suggests that the US crypto task force will focus on delivering a national Bitcoin reserve. This move could spark similar efforts in other countries, potentially leading to a global race among sovereigns to buy Bitcoin as one of the reserve assets.

Bitcoin (BTC) price analysis indicates that the cryptocurrency has been consolidating between $94,000 and $100,000 since dipping below $100,000 on February 4. Market watchers and traders are uncertain about BTC's next move, with the price facing resistance at upper levels and unable to retake key levels. Investors are concerned about a deeper correction if the price dips below $90,000, with some analysts predicting a drop to $80,000 if the price slips below this level. However, analysts remain optimistic and believe that BTC will have further upside once its consolidation phase ends, with one analyst predicting a surge past $250,000.