Bitcoin’s current consolidation between $90,000 and $100,000 has many expecting another bullish breakout. However, several developments suggest the cryptocurrency’s upward momentum may be slowing down.
Tightening USD liquidity is a major concern, with the Treasury General Account balance rising significantly in recent weeks. This could lead to a more challenging environment for risk assets like Bitcoin. Additionally, the Trump administration’s cautious approach to establishing a strategic BTC reserve has disappointed investors who anticipated swift action.
Technical analysis also points to weakening bullish momentum, with the 14-week RSI showing a bearish divergence similar to the pattern that marked the 2021 top. This negative setup would only be invalidated if the RSI crosses above the falling trendline, indicating renewed bullish momentum.
The combination of these factors suggests that Bitcoin may struggle to maintain its recent gains and could face increased selling pressure in the near term. Investors should closely monitor these developments and adjust their strategies accordingly.
Tags: Bitcoin, USD liquidity, Trump administration, technical analysis, market outlook
Source: https://www.coindesk.com/markets/2025/02/05/bitcoin-might-hit-a-wall-at-usd90k-usd110k-as-these-3-development-could-put-the-brakes-on-the-next-bul-breakout