Amid the instability of the bitcoin market, its price has fallen below the $85,000 mark, causing significant liquidations and another wave of concern among market participants.
Bitcoin Market Under Pressure
Bitcoin’s price fell sharply to $84,200 on Friday before stabilizing at $83,494 at the time of writing. This triggered over $400 million in market liquidations, with long bitcoin positions losing more than $116 million. The market downturn occurred after President Donald Trump announced a 25% automotive import tax set to begin on April 3. Experts predict that the introduced tariffs may create additional market instability.
Analysts Warn of Possible Decline
Market intelligence firm Glassnode reports that Bitcoin demand has weakened, with realized profit and loss volumes decreasing by 85% since Bitcoin's all-time high above $109,000. Analysts suggest this indicates slowing capital inflows, making short-term recovery difficult. Experienced trader Peter Brandt predicts Bitcoin may sink to $65,635, pointing to a completed bearish wedge formation. Key support levels remain at $82,000 and $76,600.
Long-Term Prospects of the Crypto Market
While long-term holders have begun accumulating BTC again, the short-term market outlook remains uncertain. Traders are cautious and are waiting for a strong catalyst that could determine Bitcoin’s further dynamics.
Bitcoin market faces new challenges amid changing regulatory environments and geopolitical instability. While long-term investors adopt a wait-and-see approach, short-term traders are awaiting external factors that could impact further dynamics.
