Bitcoin (BTC) price has declined by more than 6.5% over the last two days after rallying to $88,000 at the beginning of the week.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin dropped from a high of $87,500 on March 28 to an intra-day low of $81,900 on March 29.
BTC/USD daily chart. Source: Cointelegraph/TradingView
Bitcoin’s price drop coincides with a marketwide drawdown fueled by uncertainties over Trump’s trade tariffs and poor economic data. The ensuing sell-off in stocks has left market participants wondering how much deeper the drawdown can go.
Bitcoin wipes out liquidity in tumble to $81,000
BTC continued mounting losses on March 29, down 3% over the last 24 hours to trade just above $82,000.
Key points:
BTC price fell as low as $81,983 on Bitstamp, wiping out all the gains from earlier this week.
This came as US inflation data came in hotter than expected.
The February US Personal Consumption Expenditures (PCE) Index reading showed inflation quickening — in contrast to the January print.
While the month-on-month and year-on-year PCE tally met market expectations of 0.3% and 2.5%, respectively, their core PCE equivalents were both 0.1% higher than anticipated.
The implementation of broad-scale US tariffs next week—the so-called Liberation Day on April 2—also compounded investor concerns across markets.
24-hour crypto market liquidations hit $338 million, per data from monitoring resource CoinGlass.
Bitcoin wiped out more than $165 million in long positions between March 28 and March 29.
Crypto liquidations (screenshot). Source: CoinGlass
Additional data from CoinGlass showed intensive bands of buyer interest within the $70,000-$80,000 range in the six-month timeframe.
This suggests that Bitcoin’s price might drop further to sweep the liquidity within this range before staging a sustained recovery.
BTC/USDT liquidation heatmap (screenshot). Source: CoinGlass
In the short term, Bitcoin appears to have taken out “a lot of liquidity,” with a local bottom sitting within the $82,000 and $80,000 range, according to analyst Stockmoney Lizards.
With major short liquidation levels sitting above $88,000, the analyst said that Bitcoin could be experiencing a classic weekend correction with a possible reversal next week.
“Typical weekend dump with next week’s reversal? At least, this is a possible scenario.”
Related: Bitcoin price falls toward range lows, but data shows ‘whales going wild right now’
Bitcoin bear flag hints at $62,000
From a technical perspective, BTC’s price decline on March 29 is part of its prevailing bear flag pattern.
Key points:
A bear flag suggests a continuation of the bearish momentum, with sellers taking control.
A temporary consolidation (flag) formed near $88,000, indicating a failed breakout attempt.
Bitcoin broke below key support levels, including the lower boundary of the flag at $85,800 at the 200-day simple moving average (SMA).
This confirmed the bear flag breakdown, pointing to more losses.
ETH/USD daily chart. Source: Cointelegraph/TradingView
The measured move target from the pattern suggests a potential decline toward $62,000, representing a 25% decline from the current level.
The relative strength index remains below the mid-line, reinforcing the bearish momentum.
Founder of MN Capital, Michael van de Poppe, argued that Bitcoin will likely some more downward momentum as the trend remains lower. He adds that the price could retest the lows at $76,600 “before going back upward.”
It seems to be vital that we’re seeing some more downwards momentum on the markets for #Bitcoin.
Trend is still lower highs and lower lows.
Test at the lows before reversing back up? pic.twitter.com/8ULlJqoGRh
— Michaël van de Poppe (@CryptoMichNL) March 28, 2025
According to macroeconomic market analyst Capital Flows, however, Bitcoin could correct to the $72,000-$75,000 region if liquidity conditions remain unchanged.
Meanwhile, veteran trader Peter Brandt believes Bitcoin is on a path to $65,635 after confirming a “bear wedge” pattern.
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.
