Bitcoin Drops 3.50% to $82,450 as U.S. Reserve Plan Sparks Fear

Bitcoin's price has experienced significant volatility, with a notable plunge to $80,000, triggering substantial market liquidations amounting to $650 million within a 24-hour period. This sharp decline has raised concerns among investors about the cryptocurrency's ability to recover, as the crypto fear and greed index dropped to 17, indicating a state of fear.

The U.S. government's announcement of a Strategic Bitcoin Reserve plan contributed to a 7% drop in Bitcoin's price. The plan, which does not involve new Bitcoin purchases, has left investors uncertain about the government's intentions. While the reserve will consist of Bitcoin seized by the government, the lack of a clear buying strategy suggests that it may not have a significant impact on the market.

Market liquidations have added further pressure on Bitcoin, with long traders suffering the most, facing losses of nearly $500 million. The largest single liquidation order occurred on a major exchange, valued at $32.09 million. Despite the sharp drop, Bitcoin managed to bounce back by 2%, reaching around $83,400. However, the cryptocurrency continues to struggle below the $86,000 resistance level, risking a further decline toward the $78,000 support level.

On March 10, 2025, Bitcoin is trading at $82,450, marking a 3.50% decrease in the last 24 hours. This decline has outpaced the broader cryptocurrency market, which saw a 2.27% decrease in the same period. The current price is 16.94% below the predicted price of $99,264 for March 15, 2025, indicating a potential 20.51% increase in the next five days.

Bitcoin has experienced a bearish trend over the past month, with a 14.20% decrease in value. However, over the past year, Bitcoin has shown a positive trend, with an 18.68% increase in price. The current sentiment in the Bitcoin market is bearish, with the Fear & Greed index at 20, indicating extreme fear among investors.

Technical analysis reveals that Bitcoin is currently trading below key support levels of $78,