Bitcoin Drops Below $90,000 Amid US Tariff Concerns, Traders Await Trump Investment Announcement

Bitcoin drops below $90,000 with 5% decline amid US tariff concerns and significant crypto liquidations

  • Bitcoin dropped below $90,000, shedding up to 5% as US trade tariff concerns triggered a risk-off reaction.
  • Crypto liquidations exceeded $150 million in a four-hour period, with BTC/USD price action suggesting potential for a higher low formation.
  • Markets anticipate Trump’s upcoming “investment announcement,” with technical analysts noting Bitcoin successfully closed above the 21-week simple moving average.

Bitcoin retreated sharply as March trading began on Wall Street, with BTC dropping below the $90,000 threshold amid renewed concerns over potential US trade tariffs. The leading cryptocurrency shed approximately 5% of its value after briefly touching weekly highs on speculation about a potential US strategic crypto reserve.

- Advertisement -

Data from Cointelegraph Markets Pro and Binance“>TradingView captured the downward movement, which coincided with statements from US Commerce Secretary Howard Lutnick on CNN suggesting President Donald Trump would make decisions regarding Canadian tariffs later in the day.

The sudden price reversal triggered a wave of position liquidations across cryptocurrency markets. According to monitoring platform CoinGlass, cross-crypto liquidations surpassed $150 million in just four hours during the sell-off.

Despite the bearish price action, market participants found a silver lining in anticipation of Trump’s scheduled “investment announcement” set for 1:30 pm Eastern Time. Trading firm QCP Capital offered a balanced perspective in their latest Telegram update:

“Following last night’s clutch announcement, it’s likely that Trump will do whatever it takes to avoid presiding over a prolonged stock market drawdown, a topic he previously championed but struggled with in recent weeks.”

The firm also highlighted elevated VIX volatility index readings, indicating “broader market unease in risk assets overall,” and noted that Trump “may still have more surprises up his sleeve.”

Technical analysts remain cautiously optimistic despite the pullback. Trader Jelle wrote on X: “Bitcoin broke down from the range, dumped hard – and immediately climbed back up to reclaim the range lows. Higher low around this area would be perfect. Let’s see.”

- Advertisement -

Another analyst, Daan Crypto Trades, compared the current price action to previous consolidation patterns in the ongoing bull cycle, suggesting a potential sequence of: “Expansion -> Range -> Breakdown -> Retake -> Liftoff.”

A significant technical development occurred when Bitcoin successfully closed above its 21-week simple moving average (SMA), which Keith Alan, co-founder of trading resource Material Indicators, described as an “extremely bullish” signal. However, he cautioned traders to “be prepared for strong resistance around $90k, and potentially for a fakeout above the 21-Week MA before reverting back to a support test.”

The current market dynamics reflect ongoing tension between macroeconomic concerns and Bitcoin’s technical resilience as traders navigate volatile conditions heading into the next phase of price discovery.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest

American Engineer Drugged, Robbed in Sophisticated London Crypto Heist

An American software engineer lost approximately $123,000 in cryptocurrency after being drugged and robbed in London.The victim was targeted by an impersonator posing as...

Max Keiser Doubts New Bitcoin Treasuries’ Discipline in Bear Market

Bitcoin-focused companies are increasingly copying the treasury strategy used by Michael Saylor's Strategy.Max Keiser raised doubts about whether these newer companies can maintain commitment...

South Korea Election Puts Crypto Policy at Center of Debate

Nearly one-third of South Koreans hold digital assets, making crypto a vital issue in the upcoming presidential election.Both major parties support crypto exchange-traded funds...

Scottsdale Residents Lose $6M to Crypto Scams; Police Respond

Scottsdale residents have reported losing over $6 million to cryptocurrency Scams in 2024.Authorities say actual losses could be higher, as not all cases are...

Ethereum Bullish Patterns Signal Altseason, 55% Rally Possible

Ethereum is showing two bullish chart patterns against Bitcoin, indicating a possible 30–55% price increase. Crypto analysts say an ETH/BTC rally could spark a broad...

Must Read

17 Best Audiobooks On Blockchain Technology For Beginners

If you're looking to dive into the world of blockchain technology, you're in for a treat. The field is rapidly evolving and the potential...