Time is running out for the Bitcoin Bull: These 3 Factors are Starting to Crush Hopes! - Koin Bulletin

**While Bitcoin is expected to surpass the $100,000 level, three important factors could dampen bullish hopes for the future.

According to crypto analysts, expectations that Bitcoin's ongoing consolidation at the $100,000 level will end with a bullish breakout are weakening.

While three main reasons are presented as the rationale for this view, the decrease in dollar liquidity and US borrowings are particularly emphasized. One of the speakers on the subject, Arthur Hayes, said that the picture doesn't look particularly good.

1. Contraction of US Dollar Liquidity

One of the biggest factors affecting the general risk appetite in the markets is the tightening liquidity conditions of the US dollar.

In recent weeks, the cash reserves of the US Treasury have increased from $623 billion to $800 billion. This means that the amount of circulating dollars in the market is decreasing, which leads to less risk-taking for investors.

Similar situations have previously led to downward pressure in the Bitcoin and stock markets.

(# 2. Uncertainty in Trump Administration's Bitcoin Reserve Plan

The rise of Bitcoin from $70,000 to over $100,000 was greatly influenced by former US President Donald Trump's crypto-friendly policies.

However, in the post-election process, the Trump administration announced that instead of rapidly implementing the plan to create a Bitcoin reserve, it has entered the 'evaluation' stage.

This uncertainty has disappointed market players, causing the price to drop from $100,000 to $96,000.

)# 3rd Technical Outlook Similar to 2021 Peak

Bitcoin's weekly relative strength index (RSI) data is repeating the bear market signals seen before the peak in 2021.

While prices are making new highs, the fact that the RSI remains at lower levels indicates a weakening bullish momentum. This situation resulted in a major decline in 2021. If the RSI fails to break this trend, there is an increased risk of a downward correction in Bitcoin.

In light of these developments, it was emphasized that investors need to be cautious.