TechFlow news, according to Cointelegraph, Bitfinex analysts said the federal government's lack of direct investment in Bitcoin has led to a "short-term market negative reaction and Bitcoin price decline." Bitcoin needs to close above the key support level of $82,000 this week to avoid further declines driven by short-term investor disappointment. Analysts emphasized that investors had expected federal accumulation of Bitcoin to signal strong institutional support, but the decision to rely solely on existing holdings without increasing investment has weakened these expectations.
Nexo analyst Iliya Kalchev noted that aside from crypto-related legislation, macroeconomic developments and global trade concerns continue to weigh on Bitcoin's price. Next week, markets will focus on the U.S. Consumer Price Index and job reports, which will serve as key indicators for signs of slowing inflation and potential rate cuts.
On the technical side, Bitcoin’s Relative Strength Index (RSI) is at 28, indicating the asset is oversold. Analyst Rekt Capital pointed out that in the current cycle, every time the RSI reached 28, Bitcoin either bottomed out or was within 2% to 8% of the bottom.
