How low can the Bitcoin price go?

Bitcoin (BTC) price has declined by more than 8.5% over the last 24 hours days after rallying to $95,000 on Sunday, March 2.

Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin suddenly dropped from a high of $94,422 on March 3 to an intra-day low of $82,450 on March 4.

Bitcoin’s price drop coincides with a marketwide drawdown fueled by the implementation of trade tariffs imposed by US President Donald Trump’s administration on imports from Mexico, Canada and China. 

Related: Bitcoin no longer ‘safe-haven’ as $82K BTC price dive leaves gold on top

The ensuing sell-off has left market participants wondering how much deeper the drawdown can go.

Bitcoin wipes out liquidity in tumble to $82,000

Data from Cointelegraph Markets Pro and TradingView showed losses mounting during the Asia and Europe trading session.

Key points:

• BTC price fell as low as $82,450 on Bitstamp, wiping out all the gains made between March 1 and March 2.

• This came as the US tariffs against China, Mexico and Canada took effect.

• 24-hour crypto market liquidations hit $980 million, per data from monitoring resource CoinGlass.

• As Bitcoin fell below $90,000, it wiped out more than $350 million in long positions between March 3 and March 4.

• Additional data from CoinGlass showed intensive bands of buyer interest within the $70,000 – $80,000 range.

• This suggests that Bitcoin’s price might drop further to sweep the liquidity within this range before staging a sustained recovery.

Reacting, crypto analyst AlphaBTC noted that “Bitcoin fishing for liquidity” with its latest move, adding that strong selling could push the price to $70,000.

“I’m not seeing any strength at the moment, all of Crypto is  taking a beating.”

200-day SMA provides last line of defense for Bitcoin

From a technical point of view, Bitcoin’s price is sitting on immediate support above $82,500, or the 200-day simple moving average (SMA).

What to know:

• A drop below the 200-day SMA will cause the price to drop from the current levels toward lower lows. 

• The first key level to watch is the Feb. 28 low, around $78,200.

• Another area of interest is the fair gap value between $73,600 and $76,550, created during the November 2024 rally fueled by Trump’s election victory.

• A bearish cross appeared on the daily chart when the 50-day SMA just crossed below the 100-day SMA, as shown below.

• This indicates a shift in market sentiment from bullish to bearish, signifying a possible continuation of the downtrend.

Founder of MN Capital Michael van de Poppe argued that after being rejected by the resistance at $95,000, Bitcoin is back to “chopping around” in the four-hour timeframe.

For van de Poppe, a drop below the Feb. 28 low of $78,200 will result in a large volume candle that drives Bitcoin’s price toward mid-70,000.

“Honestly, I think we’ll need to wait until this week is over as there’s a lot of macro-economic data and events and the Summit.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.