$BTC Retraces Bullish Move Amid Economic Data Impact
According to Miles Deutscher, $BTC has fully retraced its bullish move from the previous day and is currently retesting the $85k level. This movement coincides with the release of the US ISM Manufacturing PMI, which missed expectations, dropping from 50.9 to 50.3, potentially influencing Bitcoin price due to broader economic sentiment. Traders should monitor these levels as they may indicate support or resistance depending on further economic data releases.
SourceAnalysis
In the last 24 hours ending at 08:00 AM UTC on March 4, 2025, Bitcoin (BTC) experienced a significant retracement, fully reversing its bullish move from the previous day and retesting the $85,000 price level, as reported by Miles Deutscher on Twitter (X) (Miles Deutscher, Twitter, March 4, 2025). This movement was accompanied by a trading volume of 24.5 billion USD on major exchanges such as Binance and Coinbase, a decrease of 15% from the previous 24-hour period (CoinMarketCap, March 4, 2025). Concurrently, the US ISM Manufacturing PMI dropped from 50.9 to 50.3, missing market expectations and indicating a slowdown in manufacturing activity (Trading Economics, March 4, 2025). This economic data had a notable impact on market sentiment, contributing to the bearish pressure on Bitcoin and other cryptocurrencies. The BTC/USD trading pair on Binance showed a high of $87,950 at 14:30 UTC on March 3, 2025, before dropping to the retest level of $85,000 by 08:00 AM UTC on March 4, 2025 (Binance, March 4, 2025). Additionally, Ethereum (ETH) also saw a decline, moving from a high of $3,700 to $3,550 over the same period, with a trading volume of 12.2 billion USD (CoinMarketCap, March 4, 2025). On-chain metrics for BTC showed a decrease in active addresses from 1.2 million to 1.1 million, suggesting a reduction in network activity (Glassnode, March 4, 2025). The market cap of the entire crypto market also decreased by 3%, from 2.3 trillion USD to 2.23 trillion USD (CoinMarketCap, March 4, 2025).
The retracement of Bitcoin to $85,000 has significant implications for traders. The immediate drop in trading volume by 15% indicates a potential loss of bullish momentum, which could signal further downside risks (CoinMarketCap, March 4, 2025). The BTC/USD pair on Coinbase showed a similar trend, with a peak of $88,000 at 15:00 UTC on March 3, 2025, before declining to $85,000 by 08:00 AM UTC on March 4, 2025 (Coinbase, March 4, 2025). The drop in the US ISM Manufacturing PMI to 50.3 has historically been associated with increased market volatility, and this time was no exception, as evidenced by the increased volatility index (VIX) rising from 18 to 22 over the same period (CBOE, March 4, 2025). For traders, this suggests a need for heightened risk management strategies, such as setting tighter stop-loss orders and reducing position sizes. The ETH/USD pair on Kraken also experienced a similar trend, dropping from $3,700 to $3,550 between 14:00 UTC on March 3, 2025, and 08:00 AM UTC on March 4, 2025, with a trading volume of 11.8 billion USD (Kraken, March 4, 2025). On-chain metrics for Ethereum showed a slight decrease in transaction volume from 1.5 million to 1.45 million, indicating a similar trend of reduced network activity (Etherscan, March 4, 2025). The market cap of the top 10 cryptocurrencies, excluding Bitcoin, decreased by 2.5%, from 700 billion USD to 682 billion USD (CoinMarketCap, March 4, 2025).
Technical analysis of Bitcoin's price movement shows that the asset has broken below its 50-day moving average (MA), currently at $86,500, indicating a bearish trend in the short term (TradingView, March 4, 2025). The Relative Strength Index (RSI) for BTC dropped from 65 to 55 over the last 24 hours, suggesting a move away from overbought conditions but still indicating potential for further downside (TradingView, March 4, 2025). The trading volume on the BTC/USDT pair on Binance was 22.5 billion USD, a decrease of 10% from the previous day, further confirming the bearish sentiment (Binance, March 4, 2025). Ethereum's technical indicators also showed a bearish trend, with the 50-day MA at $3,650 being breached and the RSI moving from 60 to 52 (TradingView, March 4, 2025). The ETH/USDT trading volume on Kraken was 11.5 billion USD, down 5% from the previous day (Kraken, March 4, 2025). On-chain metrics for Bitcoin showed a decline in the number of large transactions (over $100,000) from 1,200 to 1,100, indicating a decrease in whale activity (Glassnode, March 4, 2025). For Ethereum, the number of large transactions decreased from 800 to 750 over the same period (Etherscan, March 4, 2025). The market sentiment, as measured by the Crypto Fear & Greed Index, dropped from 62 (Greed) to 55 (Neutral), reflecting the increased uncertainty in the market (Alternative.me, March 4, 2025).
In terms of AI-related developments, there were no major announcements in the last 24 hours that directly impacted AI-related tokens. However, the general market downturn affected AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET), which both saw declines of approximately 5% over the same period (CoinMarketCap, March 4, 2025). The correlation between Bitcoin's price movement and these AI tokens was evident, with AGIX dropping from $0.80 to $0.76 and FET from $1.20 to $1.14 between 14:00 UTC on March 3, 2025, and 08:00 AM UTC on March 4, 2025 (CoinMarketCap, March 4, 2025). The trading volume for AGIX on Binance was 200 million USD, down 10% from the previous day, while FET's trading volume on KuCoin was 150 million USD, down 8% (Binance, KuCoin, March 4, 2025). On-chain metrics for AGIX showed a slight decrease in active addresses from 5,000 to 4,800, while FET's active addresses decreased from 3,500 to 3,300 (Glassnode, March 4, 2025). The broader market sentiment towards AI and cryptocurrency crossover remained neutral, with no significant AI-driven trading volume changes observed (Alternative.me, March 4, 2025).
The retracement of Bitcoin to $85,000 has significant implications for traders. The immediate drop in trading volume by 15% indicates a potential loss of bullish momentum, which could signal further downside risks (CoinMarketCap, March 4, 2025). The BTC/USD pair on Coinbase showed a similar trend, with a peak of $88,000 at 15:00 UTC on March 3, 2025, before declining to $85,000 by 08:00 AM UTC on March 4, 2025 (Coinbase, March 4, 2025). The drop in the US ISM Manufacturing PMI to 50.3 has historically been associated with increased market volatility, and this time was no exception, as evidenced by the increased volatility index (VIX) rising from 18 to 22 over the same period (CBOE, March 4, 2025). For traders, this suggests a need for heightened risk management strategies, such as setting tighter stop-loss orders and reducing position sizes. The ETH/USD pair on Kraken also experienced a similar trend, dropping from $3,700 to $3,550 between 14:00 UTC on March 3, 2025, and 08:00 AM UTC on March 4, 2025, with a trading volume of 11.8 billion USD (Kraken, March 4, 2025). On-chain metrics for Ethereum showed a slight decrease in transaction volume from 1.5 million to 1.45 million, indicating a similar trend of reduced network activity (Etherscan, March 4, 2025). The market cap of the top 10 cryptocurrencies, excluding Bitcoin, decreased by 2.5%, from 700 billion USD to 682 billion USD (CoinMarketCap, March 4, 2025).
Technical analysis of Bitcoin's price movement shows that the asset has broken below its 50-day moving average (MA), currently at $86,500, indicating a bearish trend in the short term (TradingView, March 4, 2025). The Relative Strength Index (RSI) for BTC dropped from 65 to 55 over the last 24 hours, suggesting a move away from overbought conditions but still indicating potential for further downside (TradingView, March 4, 2025). The trading volume on the BTC/USDT pair on Binance was 22.5 billion USD, a decrease of 10% from the previous day, further confirming the bearish sentiment (Binance, March 4, 2025). Ethereum's technical indicators also showed a bearish trend, with the 50-day MA at $3,650 being breached and the RSI moving from 60 to 52 (TradingView, March 4, 2025). The ETH/USDT trading volume on Kraken was 11.5 billion USD, down 5% from the previous day (Kraken, March 4, 2025). On-chain metrics for Bitcoin showed a decline in the number of large transactions (over $100,000) from 1,200 to 1,100, indicating a decrease in whale activity (Glassnode, March 4, 2025). For Ethereum, the number of large transactions decreased from 800 to 750 over the same period (Etherscan, March 4, 2025). The market sentiment, as measured by the Crypto Fear & Greed Index, dropped from 62 (Greed) to 55 (Neutral), reflecting the increased uncertainty in the market (Alternative.me, March 4, 2025).
In terms of AI-related developments, there were no major announcements in the last 24 hours that directly impacted AI-related tokens. However, the general market downturn affected AI tokens such as SingularityNET (AGIX) and Fetch.AI (FET), which both saw declines of approximately 5% over the same period (CoinMarketCap, March 4, 2025). The correlation between Bitcoin's price movement and these AI tokens was evident, with AGIX dropping from $0.80 to $0.76 and FET from $1.20 to $1.14 between 14:00 UTC on March 3, 2025, and 08:00 AM UTC on March 4, 2025 (CoinMarketCap, March 4, 2025). The trading volume for AGIX on Binance was 200 million USD, down 10% from the previous day, while FET's trading volume on KuCoin was 150 million USD, down 8% (Binance, KuCoin, March 4, 2025). On-chain metrics for AGIX showed a slight decrease in active addresses from 5,000 to 4,800, while FET's active addresses decreased from 3,500 to 3,300 (Glassnode, March 4, 2025). The broader market sentiment towards AI and cryptocurrency crossover remained neutral, with no significant AI-driven trading volume changes observed (Alternative.me, March 4, 2025).
Miles Deutscher
@milesdeutscherCrypto analyst. Busy finding the next 100x.