Bitcoin Price Sinks to New Weekly Low, Bulls Lose Key Support

Bitcoin fell to a new weekly low as bullish momentum waned. Price action showed signs of weakness below critical support levels. The decline came despite earlier optimism from macroeconomic developments.

The recent Supreme Court ruling on Trump-era tariffs initially eased inflationary concerns and boosted risk assets. However, the impact faded quickly with hotter-than-expected Core PCE data. Institutional and retail traders are now watching key levels to gauge the next move.

On-chain data suggests whale activity in the $65,000 range, but the price remains in a descending channel. The consolidation phase has lasted about nine days, with no clear breakout. Traders are bracing for further volatility as short positions grow crowded.

Why Did This Happen?

Bitcoin's price decline followed a failed attempt to break above the $72K resistance. The 50-day and 200-day averages remain above current levels, signaling caution. A 15% difficulty adjustment had briefly supported the price, but its effect was short-lived.

The Supreme Court ruling was initially seen as a positive catalyst. It reduced inflationary pressures by blocking Trump-era tariffs, which had been a concern for risk assets. However, the recent Core PCE data showed higher-than-expected inflation, dampening optimism.

Traders are monitoring key price levels such as $68,500 and $65,000 for signs of a reversal. The $65K range appears to be a potential support level, with on-chain data showing whale accumulation. However, a break below $66K could signal further weakness.

Derivatives positioning remains mixed, with large short exposure increasing liquidation risks. Open interest is high, which amplifies volatility. Retail and institutional traders are closely watching for a decisive move in either direction.

What Are Analysts Watching Next?

Analysts are focusing on whether Bitcoin can break out of its consolidation phase. A move above $72K would signal bullish momentum, while a failure to hold above $66K could push the price toward $58K. These levels are considered critical for determining the next major price direction.

Spot ETF outflows remain a headwind for institutional investors. While some inflows were recorded in early February, the overall trend remains cautious. On-chain activity suggests accumulation is ongoing, but confirmation of a cyclical bottom is still pending.

Momentum indicators show conflicting signals. The RSI rebounded from oversold levels, and the MACD showed a bullish crossover. However, these signals must be confirmed by price action before a reversal can be confirmed.

Market sentiment remains influenced by both technical and macroeconomic factors. Traders are advised to stay cautious as volatility is likely to persist, especially with liquidation risks and geopolitical factors in play. Market analysis suggests continued caution.