In a significant market shift, Bitcoin (BTC) has experienced a sharp decline of over 6.5% within a two-day period, following a rally that pushed its price to a peak of $88,000. According to data from Cointelegraph Markets Pro and TradingView, BTC plummeted from a high of $87,500 to an intra-day low of $81,900 on March 29.
The recent downturn is attributed to broader market uncertainties related to trade tensions, specifically Trump’s proposed tariffs, coupled with disappointing economic data. This backdrop has prompted an overall sell-off in stocks, leaving investors questioning how much further the decline may go.
Market Analysis: BTC’s Liquidity Concerns
Continuing its downward trajectory, Bitcoin traded just above $82,000 on March 29, marking a 3% loss within 24 hours, as indicated in recent reports.
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On Bitstamp, BTC’s price hit a low of $81,983, effectively erasing earlier gains.
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This downturn coincided with US inflation data showing stronger-than-expected results.
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The February reading for the US Personal Consumption Expenditures (PCE) index revealed a quicker rise in inflation compared to January.
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Furthermore, the upcoming implementation of sweeping US tariffs on April 2—dubbed ‘Liberation Day’—exacerbated investor anxiety.
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Within a 24-hour span, crypto market liquidations reached $338 million, with Bitcoin itself wiping out over $165 million in long positions.
Such liquidations reflect a volatile market, as additional data revealed concentrated buying interest within the $70,000-$80,000 range, suggesting potential for further price declines before a recovery.
Bearish Patterns Indicating Further Declines
From a technical standpoint, Bitcoin’s decline aligns with an emerging bear flag pattern, which typically indicates a continuation of negative momentum.
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This scenario suggests that sellers remain in control, following a failed breakout attempt above $88,000.
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Key support levels have been breached, including the lower boundary of the bear flag at $85,800 and the 200-day simple moving average (SMA).
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Analysts predict that the measured move from this pattern could see a price drop toward $62,000, representing a potential decline of 25% from current levels.
Market experts, including analysts like Michael van de Poppe, anticipate that Bitcoin may face further downward pressure, possibly retesting lows around $76,600 before a rebound occurs.
As the market adjusts, veteran traders and analysts alike are closely monitoring macroeconomic conditions and key price levels to better inform their strategies.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
