Bitcoin Price Dips Toward Range Lows, But Whales Are Increasing Activity

Bitcoin Price Faces Decline as Whales Make Big Moves

Bitcoin's price continued to slide on March 28, hitting a four-day low of $83,387 as the broader financial markets endured a significant sell-off. This dip in BTC’s price mirrored the declines seen in traditional equity markets, with the Dow Jones falling 700 points and the S&P 500 dropping 112 points. The downturn in stocks has been widely attributed to rising inflation fears, following the February Personal Consumption Expenditures (PCE) index report showing a 0.4% monthly increase to 2.8%, higher than expected. The market was further rattled by US President Donald Trump's announcement of new “reciprocal tariffs,” including a 25% tariff on foreign-made cars.

As traders brace for possible volatility, attention has turned to April 2, which President Trump has dubbed "Liberation Day" due to additional tariffs—potentially on pharmaceutical products—expected to be unveiled.

Could Bitcoin Fall to $65K?

Amidst the uncertainty, veteran trader Peter Brandt has raised concerns about a potential deeper decline for Bitcoin. In an X post, Brandt pointed to the completion of a “bear wedge” pattern, suggesting that Bitcoin could fall to $65,635. Brandt shared his analysis, stating:

"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 echoed Brandt's sentiment, arguing that Bitcoin's inability to break a key descending trendline, coupled with the confirmation of the bear wedge pattern, indicates that BTC could soon revisit its lower range prices.

However, despite the technical outlook suggesting further downside potential, Cole Garner, another seasoned crypto trader, pointed to rising whale activity as a potential signal of a price reversal. Garner highlighted an important metric—Bitfinex’s margin longs to margin shorts ratio—which has recently triggered a signal with historical returns of over 50% within 50 days. According to Garner, this could indicate that large institutional investors are positioning for a potential rebound in Bitcoin’s price.

The Role of Market Sentiment and Whales

Although Bitcoin’s technical indicators suggest a possible dip toward $65,000, the rise in whale activity could provide a counterbalance. Whales—large holders of Bitcoin —have been particularly active, and some analysts believe their movements could lead to a swift price reversal if they begin accumulating more BTC at these levels.

However, market sentiment remains cautious, and the broader sell-off in traditional equities could continue to weigh heavily on Bitcoin's price in the short term. As Bitcoin approaches key support levels, it’s essential for traders to monitor not only technical indicators but also shifts in broader economic conditions and regulatory developments that could influence market direction.

Positive Developments in Crypto Regulation

Despite the market turbulence, there has been positive news on the regulatory front that may have long-term implications for the crypto industry. On March 28, David Sacks, the White House’s AI and Crypto Czar, praised the FDIC and its Acting Chairman, Travis Hill, for clarifying the process through which banks can engage in crypto-related activities.

The FDIC's announcement clarified that financial institutions under its oversight could engage in crypto-related activities without needing prior approval. This move has been seen as a step toward easing regulatory barriers and fostering greater integration of crypto with traditional financial services.

For more details on the FDIC’s guidance, you can read the full announcement here.

Final Thoughts

Bitcoin’s price is currently facing downward pressure as the broader market reacts to inflation data and geopolitical uncertainties. However, technical indicators and the increasing activity from Bitcoin whales suggest that a price reversal could be in the cards. Traders will need to keep a close eye on upcoming economic events, including Trump's tariff announcements, as well as the increasing involvement of regulatory bodies like the FDIC. As always, it’s crucial to remain vigilant in navigating the volatility of both the cryptocurrency and traditional markets.