By Chris Hollingworth 
Bitcoin (BTC) has been trading within a tight range of approximately $5,500 since March 9, with a notable resistance level at $84,000. Data from Cointelegraph Markets Pro and Bitstamp shows BTC price fluctuating between $78,599 and $84,000. Several factors contribute to Bitcoin’s current price stagnation.
One significant reason for the flatness in Bitcoin price is the ongoing trade tensions instigated by former President Trump. These uncertainties have led to market unease, consequently impacting the demand for Bitcoin. Additionally, neutral funding rates and Bitcoin remaining below the 200-day Simple Moving Average (SMA) further contribute to the lack of price movement.
The broader economic and geopolitical landscape also plays a role in Bitcoin’s stagnant price. Trump’s trade policies, including proposed tariffs on Mexico and Canada, have added to market jitters. Investors, concerned about inflation and potential trade conflicts, are shying away from risk assets like Bitcoin. Furthermore, the global economic slowdown has resulted in weaker demand for Bitcoin, as observed through various metrics like short-term holder cost basis.
Glassnode’s analysis reveals that Bitcoin has experienced a shift in capital flows, indicating a decrease in demand due to macroeconomic uncertainties. Until significant external factors, such as Federal Reserve rate cuts, alter the current trend, Bitcoin may struggle to break out of its existing range. The perpetual futures funding rates for Bitcoin are nearing 0%, highlighting a sense of indecision among traders and a lack of speculative momentum.
In terms of technical analysis, Bitcoin faces substantial resistance levels, particularly the 200-day SMA and 200-day Exponential Moving Average (EMA). Failure to surpass these levels and establish them as support could prolong Bitcoin’s consolidation phase. Traders are closely monitoring these key levels for potential market direction cues.
Overall, Bitcoin’s price stagnation is influenced by a combination of trade tensions, weakening demand, and macroeconomic uncertainties. Traders should exercise caution and conduct thorough research before making any investment decisions in the current market environment.
