As the cryptocurrency market grapples with volatility, Bitcoin continues its downward journey for the fourth consecutive day, reaching a troubling low of $83,600. This decline doesn’t just spell trouble for crypto enthusiasts; it has sent tremors through Wall Street, where the Dow Jones Industrial Average plummeted by 700 points, and the S&P 500 dipped by 112 points. Amid rising inflation concerns—reflected in the year-over-year core Personal Consumption Expenditures (PCE) staying at 2.8% after a 0.4% increase—uncertainty looms large over both traditional and cryptocurrency markets.
Tariffs and Market Jitters
The recent downturn in Bitcoin’s value cannot be attributed solely to inflation. President Trump’s announcement of new **“reciprocal tariffs,”** imposing a 25% tax on foreign-built cars, has reignited trade worries, adding to the market’s anxiety. As **“Liberation Day”** approaches on April 2, traders are on edge, preparing for potential economic shifts that may include rumored medical tariffs. Currently, many in the trading community find themselves in a standby mode, holding their breath for developments that could either calm the chaos or spark further panic.
Bitcoin Whales Are Still Buying
Despite Bitcoin’s current struggles, the market isn’t entirely bleak. Some notable figures in the crypto space are viewing this downturn as an opportunity. Crypto analyst Cole Garner has drawn attention to a unique bullish signal from Bitfinex’s margin trading data, indicating that despite the retail market’s anxiety, Bitcoin whales might quietly be accumulating positions. This twist raises an intriguing question: is this decline merely a temporary setback, or are we on the brink of a larger recovery?
Price Analysis and BTC Price Prediction
On March 28, Bitcoin’s trading session extended its downward trail, reflected in the emergence of specific technical indicators. At 00:40 UTC, a golden cross appeared on the MACD, suggesting a potential price bounce. However, this optimistic sign was short-lived, as another death cross pattern emerged only a couple of hours later, reinstating the bearish sentiment. A series of oscillating signals, including a brief respite from overselling at 05:45 UTC with a golden cross, created a fragile environment for traders as selling pressure continued to loom.
According to an analysis by Alokkp0608, Bitcoin’s price deflated to approximately $85,550 before another death cross at 13:45 UTC ushered it downwards once more. Establishing a critical support level at $83,530 and an oversold signal from the Relative Strength Index (RSI) added to the complexities traders face. The current dynamics exhibit the price remaining confined within a range of $83,740 to $84,600, with both resistance and support reflecting caution in market sentiment.
Bitcoin’s Next Move: Further Declines or a Trend Reversal?
As Bitcoin whales amp up their accumulation activity, the price trends for Bitcoin stand at a crossroads—teetering between potential further declines and a possible trend reversal. Currently, the resistance is set at $85,840, while a solid support level remains at $83,530, illustrating a delicate balance between bullish and bearish movements in the market. The overall atmosphere around equities remains jittery, underscored by persistent inflation fears and ongoing geopolitical turmoil associated with tariff negotiations.
Data from on-chain metrics suggests that larger investors are gearing up for a relief rally, but caution prevails as the potential for upward volatility persists. Should Bitcoin break its resistance level, traders may glimpse a favorable upswing; conversely, repeated rejections could lead to another price leg down. As the market watches for shifts in risk appetite, combined with key signals from the MACD and RSI, traders remain poised to act in accordance with the evolving landscape in the coming days.
