Bitcoin price falls toward range lows, but data shows ‘whales going wild right now’
Bitcoin price extended its decline on March 28, falling for a fourth consecutive day to paint an intra-day low of $83,387. BTC’s (BTC) decline mirrored the Wall Street sell-off, where the DOW closed 700 points lower, alongside the S&P 500 index, which dropped 112 points.
The sell-off in equities is widely attributed to investors increasing worries over inflation after the core Personal Consumption Expenditures index data from February rose to 2.8% (a 0.4% monthly increase), which was higher than expected.
S&P 500 drops $1 trillion in market cap value. Source: X / The Kobeissi Letter
The sell-off was further amplified by the markets’ response to US President Trump’s newly levied “reciprocal tariffs,” which applied a 25% tariff to “all cars that are not made in the United States.”
The chances for a Bitcoin relief rally or oversold bounce are likely diminishing as traders cautiously keep an eye on April 2, the day Trump has labeled “Liberation Day,” where additional tariffs, including “pharmaceutical tariffs,” are expected to be unveiled.
Bitcoin price to fall to $65K?
According to veteran trader Peter Brandt, Bitcoin could be on the path to $65,635.
BTC/USD 1-day chart. Source: X / Peter Brandt
In an X social post, Brandt confirmed the completion of a “bear wedge” pattern and said,
“Don’t shoot the messenger. Just reporting on what the chart says until it says something different. Bear wedge completed with 2X target from the double top at $65,635.”
Crypto trader ‘HTL-NL’ agreed with Brandt, suggesting that Bitcoin’s failure in “breaking the ice” of a long-term descending trendline and the confirmation of the bear wedge are proof that BTC is destined to revisit its range lows.
BTC/USD 1-day chart. Source: X / HTL-NL
From a purely technical point of view, it’s difficult to project a swift reversal in Bitcoin’s price action as many of its daily timeframe metrics are not oversold. Despite the absence of strong spot market demand in the current price zone, crypto trader Cole Garner says that “whales are going wild right now.”
BTC/USD 1-day chart. Source: X / Cole Garner
According to Garner, the Bitfinex spot BTC margin longs to margin shorts metric just fired a powerful signal which shows historical returns of 50%+ returns “within 50 days.”
Related: US regulators FDIC and CFTC ease crypto restrictions for banks, derivatives
Beyond the day-to-day price fluctuations, positive crypto industry developments continue to occur on the regulatory front.
On March 28, White House AI and Crypto Czar David Sacks commended the FDIC and its Acting Chairman Travis Hill for clarifying the “process for banks to engage in crypto-related activities.”
Source: X / David Sacks
Essentially, the Federal Deposit Insurance Corporation’s letter to institutions under its oversight provided clear guidance on their ability to engage in and provide crypto-related products and services without needing to notify the FDIC first.
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.