Bitcoin (BTC) Leads the Market Pullback
Bitcoin (BTC) leads the broad market pullback with a 2% decline in the last 24 hours, plunging below a crucial support level of $87k to find “rest” at the $85k level, as disclosed in our recent report. According to market data, the asset has witnessed its market cap fall to $1.68 trillion while its daily trading volume trends in the opposite direction with a 14% increase.
Regardless, Bitcoin dominates the market with an impressive share of 61%, while the second largest coin, Ethereum (ETH), sees its dominance fall to 8%.
Bitcoin’s (BTC) Possible Direction in the Future
Analyzing available data to find the next possible direction of the asset, we found that Bitcoin could continue its bearish run as Capriole Investments’ Bitcoin Macro Index shows a troubling signal. According to the founder, Charles Edwards, this metric considers a large number of metrics in its analysis with a specific interest in on-chain and macro-market data.
Source: @A_Trade_Academy/X Bitcoin has been recording higher highs since 2023; meanwhile, the metric shows lower highs, leading to the creation of “bearish divergence.” Commenting on this, Edwards highlighted that this is not so good.
But… when Bitcoin Macro Index turns positive, I won’t be fighting it.
Agreeing with this position, analysts at the on-chain analytics platform CryptoQuant have disclosed that four on-chain metrics confirm market turbulence. Meanwhile, none of these metrics shows that Bitcoin is currently overheated.
All of these metrics suggest that Bitcoin is experiencing significant turbulence in the short to mid-term. However, none of them indicate that Bitcoin has reached an overheated or cycle-top level. In all, the Market Value to Realized Value (MVRV), Net Unspent Profit/Loss (NUPL), and Inter-Exchange Flow Pulse (IFP) metric indicates a bearish run.
Other Analysts Speak on Possible Trend Reversal
Commenting on the current market behavior, Real Vision chief crypto analyst Jamie Coutts highlighted that Bitcoin could likely hit a new all-time-high price before the end of the second quarter of 2025 (Q2 2025). According to him, the market is underestimating how fast Bitcoin could bounce back to the top.
Shedding more light on this, the analyst pointed out that his prediction could still materialize regardless of the regulatory decisions taken by the US. Meanwhile, he cited that his forecast would depend on the monetary decision by the US to ease financial conditions as well as the weakening US dollar.
Financial conditions have eased dramatically this month, highlighted by the US dollar’s third-largest three-day decline since 2015 and significant drops in rates and Treasury bond volatility. Liquidity remains central to investing in all asset classes.
Prior to this analysis, a renowned economist known as Timothy Peterson predicted that Bitcoin could hit $126k by June 1. As indicated in our previous post, Peterson argued that almost all Bitcoin annual performances occurred in two months – April and October.
Similar to this position, BitMex CEO Arthur Hayes has predicted that Bitcoin could significantly respond to a rate cut on April 1. As earlier detailed by CNF, he believes that the recent decline to $77k may have set a bottom level for the asset.
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