By Chris Hollingworth 
Bitcoin (BTC) experienced a sharp decline of over 6.5% in the past two days, retreating from its recent peak of $88,000 at the start of the week. Market data from Cointelegraph Markets Pro and TradingView reveals that Bitcoin’s price dropped from a high of $87,500 on March 28 to an intra-day low of $81,900 on March 29.
The drop in Bitcoin’s price coincided with a broader market downturn driven by uncertainties surrounding Trump’s trade tariffs and weak economic indicators. This led to a sell-off in stocks, prompting concerns among investors about the extent of the ongoing drawdown.
On March 29, Bitcoin continued its downward trend, declining by 3% over the past 24 hours and hovering slightly above $82,000. Key highlights include:
– Bitcoin’s price fell to as low as $81,983 on Bitstamp, erasing all gains made earlier in the week.
– The U.S. inflation data for February showed a higher-than-expected increase in the Personal Consumption Expenditures (PCE) Index, indicating accelerating inflation compared to the previous month.
– Concerns were amplified by the impending implementation of broad-scale U.S. tariffs on April 2, known as Liberation Day, which added to investor unease across various markets.
– Crypto market liquidations totaled $338 million within 24 hours, with Bitcoin alone liquidating over $165 million in long positions between March 28 and March 29.
Data from CoinGlass highlighted significant buyer interest between $70,000 and $80,000, suggesting that Bitcoin’s price could potentially drop further to clear liquidity within this range before a potential recovery. Short-term analysis indicated that Bitcoin had absorbed a substantial amount of liquidity, with a possible near-term support level between $82,000 and $80,000.
From a technical standpoint, Bitcoin’s price decline on March 29 formed part of a bear flag pattern, indicating a continuation of bearish momentum. Key points include:
– A bear flag typically signals a continuation of selling pressure, with sellers dominating the market.
– Bitcoin breached critical support levels, including the lower boundary of the bear flag at $85,800 and the 200-day simple moving average (SMA), confirming a breakdown and suggesting further downside potential.
– The measured move target from the bear flag pattern pointed to a potential decline towards $62,000, representing a 25% drop from the current level.
Market analysts such as Michael van de Poppe and Capital Flows offered varying perspectives on Bitcoin’s price trajectory, with expectations of further downward movement and potential retesting of lower price levels before a possible reversal.
In conclusion, Bitcoin’s recent price volatility underscores ongoing market uncertainties and the potential for further downside pressure amid a challenging macroeconomic environment. Traders and investors are advised to closely monitor market developments and technical indicators to navigate these turbulent conditions effectively.
