Bitcoin’s (BTC) bullish momentum stalled at $91,500 on Wednesday as traders struggled to push the cryptocurrency past the $92,000 resistance level. Despite earlier gains, on-chain data suggests that whale investors are hesitating, with large transactions declining due to uncertainty over U.S. trade policy.
Bitcoin Faces Key Resistance at $92,000
Bitcoin surged 10% from a weekly low of $81,480, reaching $91,860 before encountering strong resistance. This suggests that traders are reluctant to drive prices higher without clearer institutional support or a more favorable regulatory environment.
Former U.S. President Donald Trump recently hinted at a possible rollback of tariffs, which could boost risk assets like Bitcoin. However, market participants remain cautious, awaiting more clarity on policy changes before making significant moves.
Whale Transactions Drop 30%, Signaling Institutional Caution
While market sentiment remains bullish, on-chain data from Santiment shows a notable decline in large Bitcoin transactions. Transactions exceeding $1 million dropped from 3,851 on February 25 to 2,517 as of March 5, marking a 30% decrease. This sharp decline indicates that institutional investors are taking a wait-and-see approach, contributing to Bitcoin’s difficulty in surpassing $92,000.
The uncertainty surrounding the U.S. Treasury’s potential Bitcoin acquisitions is another factor limiting institutional participation. Until there is more clarity on Bitcoin’s role in strategic reserves, large investors may refrain from aggressive accumulation.
Bitcoin’s Next Move: Breakout or Correction?
Bitcoin is currently hovering around $91,937, with technical indicators providing mixed signals. Bollinger Bands suggest room for an upward move if buyers regain control, while the MACD indicator hints at a potential bullish crossover. However, if BTC fails to break past $92,000, a price correction toward $85,000 or even $82,000 could be on the horizon.
A decisive move above $92,000 with strong volume could pave the way for a rally toward $100,000. Conversely, continued hesitation among institutional investors could lead to a period of consolidation or even a short-term pullback.
Also Read: Mt. Gox Moves $1B in Bitcoin as Market Reacts to New Tariffs—What’s Next?
With Bitcoin at a critical juncture, traders are closely watching for institutional cues and macroeconomic developments that could dictate its next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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