Bitcoin price dropped below $90K this week for the first time since November, triggering widespread market fear that caused panic selling. This dip saw BTC deviate from previous cycles. Despite the recent decline, there may be hope for a recovery, as BTC price performance mirrors that of the world’s largest asset by market cap, gold.
Bitcoin price today trades at $84,459 after a 5% increase in 24 hours.
Bitcoin Price Mirrors Gold’s Rally – Is $125K Next?
Bitcoin, also labeled as digital gold, is mimicking gold’s price rally. According to analyst Ash Crypto, the recent liquidation event that wiped billions of dollars from the Bitcoin futures market is similar to what happened to gold in the last quarter of 2024.
In his analysis, he predicted that BTC price has likely bottomed up, and could be ready for the next leg up towards $125,000.
The recent Trump tariff woes have boded well for gold prices as the asset recently reached an all-time high above $2,900 per ounce. If BTC is indeed following gold’s price, it may be in a brief correction phase before making a strong recovery.
Can Bitcoin Price Rally by 13% in March?
Bitcoin may also repeat its past performance in March if it follows historical cycles. This is because March has historically been the third-best month for BTC price, with an average return of 13.12%.
If Bitcoin were to see a similar trend this month, it could potentially recover past $100,000 and target $125K. Analyst Based Money mapped this path for a recovery saying that it could attain this price between March and April.
However, it is important to note that BTC did not perform well in February like it did in previous years. Therefore, this rally is contingent on new buyers entering the market after Bitcoin price entered a “shopping area.”
According to analyst IT Tech, the recent drawdown in BTC price has pushed it to a key demand zone that has previously coincided with accumulation phases.
One of the catalysts that could support a bullish Bitcoin price forecast is the upcoming White House crypto summit. Past trends show that Trump’s crypto events have often boded well for BTC, and if this happens again, it could drive another price rally.
Key Levels to Watch in Bitcoin Price
Bitcoin price has dropped to oversold levels, which often precedes a correction to the upside. If this seller’s exhaustion coincides with a surge in demand, the king coin can bounce to the first key resistance level of $91,579.
The widening Bollinger bands indicate that Bitcoin is likely to face more volatile price swings. The price is fluctuating at the lower band showing oversold conditions. For a strong bullish momentum and price recovery, the asset needs to reach the middle band of $93,614.
Conclusion
Bitcoin price is mirroring gold’s recent rally after the recent liquidation event. At the same time, March has always boded well for BTC price, with average returns of around 13%. If these past trends repeat, Bitcoin price could likely rally past $125K in March 2025.
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