The value of Bitcoin continued its drop on March 28, decreasing for the fourth straight day to record an intra-day low of $83,387. The decline in BTC’s (BTC) price was in line with the downturn on Wall Street, where the DOW ended 700 points down, alongside the S&P 500 index, which fell by 112 points.
The decline in equities is largely attributed to heightened investor concerns regarding inflation after the core Personal Consumption Expenditures index figure from February climbed to 2.8% (a 0.4% monthly rise), surpassing expectations.
The sell-off was also intensified by the market’s reaction to US President Trump’s newly imposed “reciprocal tariffs,” which enacted a 25% tariff on “all vehicles not produced in the United States.”
The likelihood of a relief rally for Bitcoin or a bounce from oversold levels seems to be waning as traders carefully monitor April 2, the date Trump labeled as “Liberation Day,” when further tariffs, including “pharmaceutical tariffs,” are anticipated to be announced.
Could Bitcoin price drop to $65K?
Veteran trader Peter Brandt suggests that Bitcoin might be heading towards $65,635.
In a post on X, Brandt confirmed the formation of a “bear wedge” pattern and remarked,
“Don’t blame the messenger. Just conveying what the chart indicates until it suggests otherwise. Bear wedge completed with 2X targets from the double top at $65,635.”
Crypto trader ‘HTL-NL’ concurred with Brandt, indicating that Bitcoin’s inability to “break the ice” of a long-term downward trendline and the confirmation of the bear wedge are solid evidence that BTC may revisit its lower range.
From a purely technical standpoint, projecting a rapid turnaround in Bitcoin’s price movements is challenging as many of its daily timeframe indicators are not in an oversold condition. Despite the lack of strong demand in the spot market at the current price levels, crypto trader Cole Garner asserts that “whales are aggressively accumulating right now.”
Garner explained that the Bitfinex spot BTC margin longs to margin shorts metric has just triggered a strong signal that historically shows over 50% returns “within 50 days.”
Related: US regulators FDIC and CFTC relax crypto regulations for banks, derivatives
Apart from the daily price movements, positive advancements in the crypto industry continue to emerge on the regulatory side.
On March 28, White House AI and Crypto Czar David Sacks praised the FDIC and its Acting Chairman Travis Hill for detailing the “process for banks to participate in crypto-related activities.”
In essence, the letter from the Federal Deposit Insurance Corporation to the institutions under its jurisdiction provided clear instructions on their capabilities to engage in and offer crypto-related products and services without prior notice to the FDIC.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should perform their own research prior to making any choices.
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