Bitcoin Drops 11% in Four Days as Wall Street Sell-Off Intensifies

Bitcoin's price continued to decline on March 28, marking its fourth consecutive day of losses and reaching an intra-day low of $83,387. This downward trend mirrored the sell-off on Wall Street, where the DOW closed 700 points lower, and the S&P 500 index dropped 112 points. The sell-off in equities was largely attributed to growing investor concerns over inflation, following the release of February's core Personal Consumption Expenditures index data, which rose to 2.8% (a 0.4% monthly increase), exceeding expectations.

The market's response to US President Trump’s newly imposed “reciprocal tariffs,” which applied a 25% tariff to “all cars that are not made in the United States,” further exacerbated the sell-off. The chances for a Bitcoin relief rally or oversold bounce are diminishing as traders cautiously monitor April 2, the day Trump has designated as “Liberation Day,” when additional tariffs, including “pharmaceutical tariffs,” are expected to be announced.

According to veteran trader Peter Brandt, Bitcoin could potentially fall to $65,635. In a social media post, Brandt confirmed the completion of a “bear wedge” pattern and stated, “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 to break through a long-term descending trendline and the confirmation of the bear wedge indicate that BTC is likely to revisit its range lows.

From a technical perspective, it is challenging to predict a swift reversal in Bitcoin’s price action, as many of its daily timeframe metrics are not oversold. Despite the lack of strong spot market demand in the current price zone, crypto trader Cole Garner noted that “whales are going wild right now.” Garner observed that the Bitfinex spot BTC margin longs to margin shorts metric has just fired a powerful signal, which historically shows returns of 50%+ “within 50 days.”

Beyond the daily price fluctuations, positive developments continue to occur in the crypto industry, particularly 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.” 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.