The cryptocurrency market has seen a recent decline in its recovery, with a sharp sell-off erasing almost all of the weekly gains. This comes as investors grow cautious about President Trump’s upcoming tariffs scheduled for April 2, along with stronger-than-expected core PCE data. Bitcoin, in particular, is facing increased selling pressure below the $85,000 mark and is on track for its worst quarter since 2018. Analysts are now speculating whether Bitcoin will finish March below the critical $80,000 level.
Bitcoin’s price has dropped significantly in the past few hours, leading to the liquidation of nearly $90.56 million in BTC positions. This puts Bitcoin on track for its worst Q1 performance since 2018, with data from CoinGlass showing an 11.86% decline in Q1 2025. The drop in open interest by about 4.5% over the past 24 hours suggests a decrease in trading activity among BTC traders, which could lead to lower volatility and more cautious market behavior.
The long/short ratio has also seen a noticeable decline, indicating an increasing bearish sentiment among traders. Approximately 62.3% of traders are now betting on a further price decrease for Bitcoin, while only around 38% are hopeful for a rebound. In addition, Bitcoin ETFs have experienced notable outflows, pushing BTC closer to the $80,000 level. Fidelity’s FBTC fund alone saw $93.16 million in outflows on Friday, ending a 10-day streak of inflows.
As Bitcoin faces increased selling pressure, its price has fallen below significant Fibonacci support levels, reaching a low of around $81,644. Currently trading near $82,289, down approximately 1.7% over the past 24 hours, sellers are actively holding the crucial resistance at $85,000 to prevent a bounce back. However, buyers remain determined and ready for another push to reclaim this key level.
If buyers succeed in regaining the $85,000 level, market sentiment could turn positive, potentially leading to further upward momentum towards the next major resistance near $90,000. On the other hand, if buyers fail to overcome this critical barrier, Bitcoin could face increased selling pressure, potentially falling back towards the support zone between $80,000 and $78,000. It will be interesting to see how Bitcoin navigates these challenges in the coming days.