Bitcoin news: BTC faces strong resistance despite softer inflation data
BTC rebounds, but gains remain limited
Bitcoin price has struggled to break above a critical resistance level this week, despite two consecutive up days.
After reaching a fresh four-month low near $76,000, BTC attempts to recover have remained trapped below $84,400, a price level that has now rejected gains three times. With inflation data coming in lower than expected, speculation about a Federal Reserve policy shift has added another layer of uncertainty to Bitcoin’s next move.
The U.S. Bureau of Labor Statistics reported a 0.2% increase in the Consumer Price Index (CPI) for February, bringing annual inflation down to 2.8%—below the 2.9% forecast. Core CPI, which excludes food and energy, also rose 0.2% month-over-month, missing projections of 0.3%. This data reinforced expectations that the Federal Reserve could consider rate cuts sooner rather than later.
Lower interest rates generally boost liquidity and favor risk assets like Bitcoin. Following the CPI release, BTC edged higher, but its momentum was short-lived as the $84,400 resistance level held firm.
Bitcoin price dynamics (Feb 2025 - March 2025). Source: TradingView.
50 EMA resistance on the 4hr chart reinforces Bitcoin bearish outlook
On the 4-hour chart, Bitcoin price shows strong resistance at $84,400, reinforced by the 50-period Exponential Moving Average (EMA). BTC tested this level again during the Asian session today but reversed near $83,000, highlighting continued selling pressure.
With this resistance capping gains for the third time this week, Bitcoin remains vulnerable to further downside. If bearish pressure persists, the next key level in view is $80,000. However, a decisive break above $84,400 could open the door for a move toward the $90,000 psychological level. Hence, Bitcoin’s direction hinges on whether bulls can overcome this resistance or if sellers will take control, pushing prices lower.
Panic selling from short-term holders drove Bitcoin to a four-month low of $76,600. The price rebounded over 6% yesterday, approaching $84,400 but remains under pressure.
