Bitcoin enters key monitoring zone amid unstable recovery

Bitcoin has entered a period that warrants close observation, with its direction in April dependent on liquidity and macroeconomic events, according to an analysis by cryptocurrency financial services firm BIT (formerly Matrixport). In a post on X, the firm noted that after months of correction, Bitcoin has seen a slight rebound and is now retesting a key support level it had previously broken. However, BIT stated that the foundation for this recovery remains unstable and the overall trend is weak, citing accumulating macroeconomic pressure and deteriorating liquidity. While April is typically perceived as a bullish period, the firm argued that simply applying historical data is difficult this time. Instead, liquidity conditions and macroeconomic events at the beginning of the month are the key variables. Whether the market can sustain its rebound this month will depend on the interplay between fund inflows, position structures, and external events, BIT explained.