Will Bitcoin Crash? Price Rebound Offers Miners Temporary Relief After Tough March

Bitcoin miners faced growing pressure in March as profitability declined sharply amid falling prices and transaction fees. But this could change in April as the cryptocurrency’s price rebounded, hitting $85,000 and outpacing the broader U.S. stock market.

Mining profitability fell 7.4% in March, driven by an 11.2% drop in the average BTC price and a 9.1% slide in transaction fees, Coindesk reported, citing investment bank Jefferies.

Challenging Month for Bitcoin Miners

These two metrics, which directly impact miner revenue, signaled a challenging month for operators despite a rise in network contribution from U.S.-listed miners.

Jefferies reported that public mining companies in the U.S. mined a total of 3,534 BTC in March, up from 3,002 in February. Their share of the total Bitcoin network also rose to 24.8% from 23.6% the previous month.

Marathon Digital Holdings led production with 829 BTC mined, followed by CleanSpark with 706 BTC. Despite the increase in production, the financial return diminished due to weaker pricing and fee structures across the network.

Jefferies noted a different picture emerging in April. While mining profitability data is not yet available, Bitcoin has shown surprising resilience. The cryptocurrency briefly rallied to $85,000 on Monday, fueled in part by easing trade concerns.

According to CoinMarketCap data, Bitcoin traded at $84,702 at the time of reporting, up 7% over the past week. The 24-hour trading volume surged 37% to more than 35 billion, largely reflecting post-weekend activity. Market capitalization increased to $1.68 trillion.

Key Levels to Watch

The immediate price resistance level is currently at $87,800. On-chain data suggests significant liquidity has built up at this level, where many traders have placed stop or limit orders.

A move beyond this threshold with high volume could trigger a bullish breakout and push BTC into new territory. The next resistance level is at $90K. Alternatively, if bears defend the level aggressively, the market could see a rejection and short-term correction.

For now, traders are watching closely as Bitcoin hovers just below this inflection point. Despite the headwinds faced in March, the early April performance may provide some relief for miners, especially if the current momentum sustains. But with mining rewards halving on the horizon, the profitability calculus could change rapidly once again.