Bitcoin’s price has encountered a significant decline, dropping for the fourth consecutive day to an intra-day low of $83,387 as of March 28. This downturn aligns with a broader sell-off in equities, where the DOW fell by 700 points and the S&P 500 index dropped by 112 points. The correlation between Bitcoin’s downturn and stock market volatility raises questions about investor sentiment and market stability.
The current sell-off in the equity markets has largely been attributed to rising inflation concerns, ignited by the recent core Personal Consumption Expenditures (PCE) index data from February, which recorded a 2.8% increase—a figure exceeding analysts’ expectations. Such economic pressures compel investors to reevaluate their positions, thus influencing riskier assets like cryptocurrencies.
S&P 500 drops $1 trillion in market cap value. Source: X / The Kobeissi Letter
The situation has been exacerbated by recent events, notably President Trump’s introduction of reciprocal tariffs. The announcement of a 25% tariff on all cars not manufactured in the U.S. has stirred further market anxiety, potentially impacting global supply chains and economic relations.
Future Outlook: Could Bitcoin Fall to $65K?
Veteran trader Peter Brandt has posited that Bitcoin could be on a trajectory towards $65,635, signaling a concerning technical analysis for BTC investors. Brandt pointed out the completion of a ‘bear wedge’ pattern and indicated a double top that leads him to predict this downturn. In a market already grappling with bearish indicators, such comments resonate with traders watching for potential recovery signs.
BTC/USD 1-day chart. Source: X / Peter Brandt
Separately, trader ‘HTL-NL’ echoed Brandt’s sentiment, suggesting Bitcoin’s failure to break through a long-standing trendline combined with the confirmed bear wedge pattern indicates a pullback towards its previous range lows.
BTC/USD 1-day chart. Source: X / HTL-NL
Considering the technical aspects, projecting a swift reversal in Bitcoin’s pricing appears challenging. Recent metrics do not indicate oversold conditions, and market demand remains weak. However, an interesting perspective comes from trader Cole Garner, who observes that while spot demand appears limited, whale activity in the market suggests significant movements. Garner mentions that recent signals from Bitcoin margin trading on Bitfinex point to a potentially influential shift that historically has resulted in substantial returns.
BTC/USD 1-day chart. Source: X / Cole Garner
On the regulatory front, positive developments are emerging in the cryptocurrency landscape. David Sacks, the White House AI and Crypto Czar, recently acknowledged the FDIC’s proactive stance in clarifying processes for banks engaged in crypto-related activities. This guidance underscores the evolving nature of regulatory frameworks around digital currencies, potentially providing a more stable environment moving forward.
Source: X / David Sacks
The recent turmoil in the Bitcoin market may prompt investors to reassess their strategies, especially with upcoming events and potential regulatory shifts. As always, the volatility of cryptocurrencies necessitates careful consideration and informed decision-making from market participants.
This article does not contain investment advice or recommendations. All investments and trading decisions carry risks, and readers should conduct their own research before making any financial choices.
