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Bitcoin Price Drops Amid Market Sell-Off, But Whales Are Accumulating
The Bitcoin price remained in decline on March 28th, which was the fourth day in a row of declines and a new all-time low at $83,387. The downward trend was closely related to more of a sell-off within the Wall Street market, where the DOW dropped 700 points, and it was the S&P 500 dropped 112 points.
The current decline in cryptocurrency and equities markets has been widely linked to concerns about inflation. This was further which was exacerbated after the release of February’s personal consumption Expenditures (PCE) indicator, which revealed an increase of 2.8 percent increase over the previous year as well as an increase of 0.4 percent increase month-over-month, surpassing analysts’ estimates. Additionally, concerns deepened following U.S. President Trump’s newly introduced “reciprocal tariffs,” imposing a 25% tax on all non-U.S.-manufactured cars.
Will Bitcoin Drop to $65,000?
Market analysts are keeping an eye on the possibilities of Bitcoin suffering another decline. The veteran investor Peter Brandt has warned that Bitcoin could fall as low as $65,635, about a “bear wedge” pattern on the charts of prices. On social media, Brandt stated:
“Don’t shoot at the messenger. Simply reporting what the chart tells you until it is different. The bear wedge was completed, with a 2X target from the double top, which is $65,635.”
Another well-known crypto trader, HTL-NL, has echoed Brandt’s worries and pointed out that the inability of Bitcoin to break free of a downward trendline for a long time makes it more likely for the possibility of a test to retest lower levels of the range.
In terms of the technical aspect, the daily indicators of Bitcoin don’t currently indicate an oversold situation, which makes it challenging to anticipate any immediate price decline. In the absence of any strong demand for spot markets further hinders the possibility of a rebound over the next few months.
Whales Are “Going Wild” Despite the Drop
Although retail traders are aware, crypto analyst Cole Garner highlights an interesting change in whale activity that is accelerating. It suggests that big buyers are investing in Bitcoin despite the recent decline. A higher level of whales could suggest a possible rebound because these investors are known to invest heavily in markets that are experiencing downturns.
Regulatory Developments Provide a Silver Lining
In spite of price volatility the crypto market has been witnessing significant regulatory improvements. On the 28th of March, White House AI and Crypto Czar David Sacks applauded the FDIC and acting chairman Travis Hill for clarifying how banks are able to engage in activities related to crypto.
The Federal Deposit Insurance Corporation (FDIC) issued a notice that gives precise guidelines for banks operating under its supervision, which allows them to offer crypto-related products and services without needing an advance notification from the FDIC. This is a major regulatory step in the right direction, possibly leading to greater institutions’ use in use of cryptocurrency.
What’s Next for Bitcoin?
Market participants are preparing for April 2, which President Trump has declared “Liberation Day”; market players are keeping tabs on new tariffs, which could include drug tariffs that could affect financial markets even more.
At present, Bitcoin’s price is in a tense position. Are we likely to see it continue the decline to $65,000 or the accumulation of whales spark a rise? The only way to know is time however, traders must pay close attention to market indicators for the next few days.
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