YEREVAN (CoinChapter.com) —
GameStop announced its decision to hold Bitcoin (BTC) as a treasury reserve asset, with future purchases subject to board approval. The company has not set a maximum limit on its Bitcoin holdings and retains the flexibility to sell its assets. This move aligns GameStop with corporations like Tesla and Coinbase, which have integrated Bitcoin into their financial strategies.
Following the announcement, GameStop’s stock surged over 10%, reflecting a strong market response. The chart shared by Bitcoin Magazine shows GameStop’s pre-market price jumping to $28.79, a sharp increase from its previous trading levels. Despite this significant rise in GameStop’s stock, Bitcoin did not show a similar reaction, moving only 0.5% within the hours following the announcement before retracing back to previous levels.
Analyst Joe Carlasare pointed out that Bitcoin’s lack of movement suggests a dip toward $84,000 is possible. He noted that such news should typically boost demand, but Bitcoin failed to show any upward momentum. His analysis suggests weak buying interest at current levels.
Alan Knitowski shared a chart comparing Bitcoin’s price trend to the global M2 money supply, adjusted by 107 days. The data suggests that Bitcoin may see a major move by April 30, but the immediate reaction remains subdued. Knitowski appeared to agree with Joe Carlasare, implying that the lack of a Bitcoin pump following GameStop’s Bitcoin treasury announcement signals weakness in the market.
Traders Expect Bitcoin to Drop to $84K
Analyst Roman (@Roman_Trading) examined Bitcoin’s technical indicators, highlighting overbought conditions and weekly resistance levels. He pointed out that Bitcoin’s recent rally showed weak momentum, making it unlikely to sustain upward movement. According to his analysis, Bitcoin’s price action remains bearish, with overbought stochastic levels signaling a potential reversal.
Roman’s chart illustrated a breakdown scenario, where Bitcoin could struggle to hold key resistance and face selling pressure near $87,500. He emphasized that a rejection at this level could trigger a sharp decline, leading to a retest of lower support zones around $80,000. The analyst also noted that volume trends do not support a strong continuation, further indicating that Bitcoin’s price could move downward.
Market sentiment appears uncertain, with Bitcoin facing selling pressure near resistance. If buyers fail to hold key levels, analysts believe a move toward $84,000 remains likely.
Traders Remain Cautious Despite Bitcoin News
Bitcoin’s rising wedge formation has drawn attention. Analyst SFrankie (@Frankie_HiNRG) highlighted that this pattern often signals weakness, as price moves higher while volume declines. He noted that Bitcoin held $87,000, showing some strength, but warned that this formation leaves untapped liquidity behind, making it vulnerable to a breakdown.
SFrankie pointed out that $89,000 to $91,000 is the last resistance area before bulls could claim full control. If Bitcoin breaks above this level, it could gain further upside momentum. However, if the price fails to hold, a reversal toward lower support levels is likely. His analysis suggests that Bitcoin could face a step-by-step decline, testing multiple lower levels before confirming a new trend.
He noted that weak volume reduces the chances of a sustained rally, while large holders could take profits at key resistance levels, adding selling pressure.
Bitcoin Shows Weak Momentum as Analysts Warn of a Drop to $84K
Bitcoin’s price action remains uncertain, with BTC/USD trading near $86,614 after failing to maintain momentum above $87,000. The Relative Strength Index (RSI) on the 1-hour chart shows a downward trend, currently at 36.73, indicating weak buying pressure. A further drop below 30 could push Bitcoin into oversold territory, potentially accelerating further downside.
The 50-period Exponential Moving Average (EMA) is acting as dynamic resistance, with Bitcoin struggling to stay above it. The chart reveals multiple failed attempts to reclaim higher levels, reinforcing the bearish sentiment. The recent decline in volume suggests a lack of strong buyer interest, increasing the risk of a further drop.
Why Didn’t Bitcoin React to GameStop’s News?
Bitcoin did not react to GameStop’s Bitcoin treasury announcement because the market had already anticipated the news. Investors also focused more on GameStop’s stock movement rather than seeing the news as a strong signal for Bitcoin itself. Bitcoin’s market has also matured, and individual corporate investments no longer cause sharp price swings as they did in previous years.