After trading within a certain range for most of February, Bit(BTC) fell below the correction range and dropped below $90,000 for the first time since November. Bit(BTC) is currently trading at $88,956.
This decline indicates that selling pressure is increasing, and there are concerns that the downtrend may continue in March as well.
Maintaining the trading range or breaking through... Expert opinions
According to Brian, the senior analyst at the cryptocurrency online data platform Sentiment, Bit(BTC) whales are reducing their trading activity, which increases the likelihood that the value of the coin will decline further.
"Bit(BTC) whales are taking a breather and are not accumulating at the moment (mostly flat)," Brian told BeInCrypto.
The decrease in net inflows of Bit(BTC) whales supports Brian's view. According to the cryptocurrency on-chain data platform IntoTheBlock, this indicator has plummeted by more than 600% over the past 30 days.
Whales refer to addresses that hold more than 0.1% of the circulating supply of an asset. Their net inflow tracks the amount of coins they have bought and sold over a specific period.
A decrease in net inflow signals that these key investors are reducing their token holdings. This can exert downward pressure on the Bit(BTC) price as the supply in the market increases.
According to John Glover, the Chief Investment Officer (CIO) of Ledn, Bit(BTC) is likely to remain between $89,000 and $108,000 in March.
"From a technical perspective, Bit(BTC) is following one of two paths. First, it could drop to $89,000 or even $77,000 before the next rally. Second, we may have already seen the bottom, and the next move will be an increase to around $130,000. It is impossible to predict which path we are on, and short-term forecasts are meaningless as weekly/monthly movements are driven by news and, more recently, the actions of large players like strategies. In my personal view, it will be trapped between $89,000 and $108,000 in March," Glover said.
Additionally, considering former President Donald Trump's pro-cryptocurrency stance, some investors are curious about how his policies might affect Bit(BTC) prices in March. However, Glover believes that most of the "Trump effect" has already been priced in.
"Most of the 'Trump effect' has already been felt. We know that he is very supportive of digital assets and is pushing for plans to simplify regulations around cryptocurrencies. In the short term, I don't think he will be a major factor," Glover said.
Bit(BTC), approaching oversold levels... Can it rebound?
Bit(BTC) is in an oversold state and may be poised for a rebound. This is reflected in the Relative Strength Index (RSI) value. At the time of reporting, this momentum indicator was at 31.16, indicating a downtrend.
This indicator measures the overbought and oversold market conditions of an asset. It ranges from 0 to 100, with values above 70 indicating the asset is in an overbought state and may be due for a decline. Conversely, values below 30 suggest the asset is in an oversold state and may be primed for a rebound.
The RSI value of Bit(BTC) is approaching the oversold region, implying that if selling pressure eases, it could rebound to $92,325.
However, if this decline persists, the coin's price could fall to $80,835.
