Bitcoin (BTC) has recently seen a significant price decline, falling to $91,180, marking a 10% drop in the last 24 hours. With mounting concerns about the future of its price, there is growing speculation that Bitcoin could continue its downward trajectory. According to data from Derive.xyz, there’s a 22% chance that Bitcoin could plunge to $75,000 by March 28. Here’s a breakdown of the factors contributing to this bearish outlook.
One of the primary drivers of the potential Bitcoin price drop is the ongoing trade war between the United States and its major trading partners. The U.S. recently imposed new tariffs on imports from China, Mexico, and Canada, which could increase inflation and make it more difficult for central banks to reduce interest rates. This situation may have negative consequences for Bitcoin, as rising inflation and a struggling economy could reduce investor confidence in the cryptocurrency.
To be more specific, the U.S. has imposed a 25% tariff on imports from Mexico and Canada, alongside a 10% tax on Chinese goods. In retaliation, Canada has implemented its own 25% tariffs on U.S. goods, while China is considering legal action against the U.S. at the World Trade Organization (WTO). These developments have further intensified fears of a potential economic slowdown, which could ultimately affect Bitcoin’s price negatively.
Inflationary pressure from the tariffs may drive central banks to maintain higher interest rates, limiting their ability to stimulate the economy. As a result, traditional markets may face more challenges, leading investors to seek safer investments. Bitcoin, being a volatile asset, may struggle to attract attention in such an environment, leading to further price declines.
Robert Kiyosaki, a well-known investor, previously warned about the risk of a sharp Bitcoin drop due to the new tariffs. Back when Bitcoin was trading at approximately $101,000, Kiyosaki highlighted the potential for a correction, which now seems to be playing out. Similarly, former BitMEX CEO Arthur Hayes also predicted that Bitcoin could fall to $75,000 before a potential rally takes place, with current patterns in Bitcoin’s price action suggesting this outcome might be more likely.
Bitcoin’s recent price movements show increasing bearish momentum. Key technical indicators are pointing toward a potential further decline. The Relative Strength Index (RSI) has dropped below 50, signaling that Bitcoin is in a strong downtrend. Moreover, the Moving Average Convergence Divergence (MACD) has shown a bearish crossover, which typically indicates more downward movement in the market.
For Bitcoin to avoid further price declines, it must hold certain support levels. If Bitcoin fails to maintain its position above $90,500, it could test lower levels, with the next key support at $85,000. On the other hand, resistance lies near the $95,000 mark. If Bitcoin is able to break through this resistance and recover above $96,500, it could potentially regain bullish momentum and reverse the current trend.
At this point, Bitcoin’s price action is heavily dependent on its ability to maintain key support levels. A drop below $90,500 could lead to a test of $85,000, while further declines could push the cryptocurrency even closer to the $75,000 mark. Investors should closely monitor Bitcoin’s price and be prepared for potential volatility, as the broader market sentiment is currently leaning bearish.
However, if Bitcoin manages to recover and break through resistance levels, such as the $96,500 threshold, it could pave the way for a bullish recovery, signaling that the downtrend may be over.
As the global economic landscape is impacted by rising tariffs and inflation concerns, Bitcoin faces increased risks that could drive its price down to $75,000 by March 28, according to Derive.xyz’s data. With key technical indicators signaling bearish momentum, Bitcoin’s ability to hold key support levels will determine whether the price continues to decline or if a reversal occurs. Investors should remain cautious and watch for any signs of a recovery as they navigate the current market uncertainty.
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