Bitcoin Price Stagnates Amid Low Volume, Whale Activity Rises

Bitcoin bulls are experiencing acute fatigue, causing the price to remain stuck within a narrow range and failing to achieve vital levels. Despite facing extreme compression, the price has not triggered a strong reaction, raising concerns over the next price action. The Bitcoin price and the entire market were expected to be highly volatile during the last trading day, but BTC prices failed to reach either of the marked levels and remained constrained within a narrow range. This offers short-term relief from volatility, but from a wider perspective, such sluggish Bitcoin behavior could be worrisome. After facing rejection from $86,800, traders appear to have become pessimistic, which mirrors the volume that has slashed below $20 billion. Whenever the volume plunges to such lows, the prices usually remain lethargic by maintaining a range-bound consolidation. Now the question arises: will the Bitcoin price go up or crash in 2025?

Before analyzing the price movements, it is important to look at the factors impacting the upcoming BTC price action in 2025. The recent price action of Bitcoin suggests a notable drop in the on-chain readings and future data as well. Meanwhile, whale accumulation remains at its peak, suggesting a substantial rise in institutional investors. The data suggests that BTC wallets holding over 1000 BTC have increased and are currently stabilized. Monitoring whale activity is extremely crucial, as they can influence the BTC price. The growing number of whales displays growing confidence among investors. Apart from whales, first-time investors or new investors are also on the rise. The February 23 plunge that dragged the levels from $96,500 to $82,300 attracted huge investors to the platform. These new investors have accumulated nearly 172,705 BTC since then. This can be considered one of the bullish signals, as it also denotes a rise in the investor’s confidence in the token. These on-chain readings hint towards a significant rise in the confidence of whales and new investors, which is important to maintain the volatility within the markets. Besides, huge transfers of close to 3000 BTC between unknown wallets may also shake up the volatility in the coming weekend, compelling traders to believe a huge whale movement is underway. Therefore, the upcoming weekend could be pretty important for the Bitcoin price, as a rise above the pivotal range at $84,800 may help to close the quarterly close on a bullish note above $85,000.

The upcoming weekend is pivotal for Bitcoin's price trajectory, as a rise above the critical range of $84,800 could significantly influence the quarterly close. According to the analyst's forecast, if the buying pressure persists, Bitcoin could surpass $87,000. However, in the short term, a trading range may be expected before any substantial movement occurs. This prediction is based on the current market conditions and the potential impact of external factors such as Federal Reserve policies. The Federal Reserve Chairman's recent comments on tariff policies and their potential impact on inflation have added a layer of uncertainty to the financial landscape, particularly in the crypto market. This ambiguity has caused significant volatility in the crypto market, with major currencies like Bitcoin and Ethereum reacting to the comments.

Bitcoin's performance over the past week has been impressive, with a reported 3% price increase on March 20. Starting the day at $82,776, Bitcoin experienced an uptrend briefly before a correctional period pulled it back to $82,600. The support trendline kept climbing until 16:00 UTC as Bitcoin reached $84,800. However, the overbought RSI brought a death cross at 16:25 UTC, pulling the price back to $84,000 by 18:10. A golden cross at 18:15 indicated price improvement, leading to a huge upward spike that took Bitcoin to find resistance at $85,850. The resistance was breached, and Bitcoin rose further to $87,447. The overbought RSI sparked a price decline, and March 20 saw Bitcoin falling again, eventually finding stability around the $85,700 mark. Currently, a local support zone has formed at $84,800–$83,500, casting doubt on the scenario of a decline to the lower boundary. This support zone is crucial as it provides a buffer against potential downward movements. If Bitcoin can maintain its bullish momentum, it could soon be seen soaring upwards of $87,000. However, if the buying pressure wanes, Bitcoin could find itself near the $85,000 range. The market is currently in a state of flux, with traders and investors closely monitoring the situation for any signs of a breakout or reversal.