Bitcoin is experiencing a decline for the fourth consecutive day, causing concern among small investors, while large players are increasing their positions.
Financial Crisis and Bitcoin
The recent drop in Bitcoin occurs against a backdrop of a worsening global economy. On March 28, U.S. stock markets also lost ground: the Dow Jones was down 700 points, and the S&P 500 fell by 112 points. The main cause of anxiety is new inflation data, which exceeded economists' expectations, sparking fears of prolonged tightening by the Federal Reserve. Additionally, President Trump imposed “reciprocal tariffs” on vehicle imports, further impacting the markets.
Conflicting Trader Forecasts
Veteran trader Peter Brandt suggests Bitcoin could continue its decline to $65,635, citing the completion of a 'bearish coin' pattern and cautioning to follow the chart until it indicates otherwise. 'Don’t shoot the messenger. Just refer to what the chart says until it indicates otherwise,' Brandt warned. Some analysts, like HTL-NL, point to Bitcoin's inability to break through a long-term downtrend line. However, analyst Cole Garner identifies a positive signal: 'whales are going wild right now,' suggesting high activity from large investors may indicate an impending rise.
Regulation and Prospects
Amid market turmoil, regulatory changes in the U.S. provide positive developments for cryptocurrencies. On March 28, David Sacks, head of AI and crypto at the White House, welcomed clarification from the FDIC regarding banks engaging in cryptocurrency activities without prior notification to the regulator.
The gap between negative technical forecasts and large investors' activity may create opportunities for savvy market participants who can take advantage of upcoming recovery.
