Bitcoin Dips Below $90K Amid Market Liquidation

Bitcoin (BTC) experienced a significant price drop below $90,000 at the March 3 Wall Street open. This downturn, reaching up to 5% on the day, followed initial optimism surrounding a potential US strategic crypto reserve. The sell-off coincided with increased uncertainty in the broader market due to ongoing US trade tariff discussions.

Market Volatility and Liquidations

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD falling below the $90,000 mark. This price movement resulted in over $150 million in cryptocurrency liquidations within four hours, according to CoinGlass. The uncertainty surrounding potential tariffs against Canada, hinted at by US Commerce Secretary Howard Lutnick, contributed to a nervous market sentiment.

Despite the downturn, anticipation of an investment announcement by President Trump at 1:30 pm Eastern Time offered a glimmer of hope for some investors. Trading firm QCP Capital offered a balanced perspective, noting elevated VIX volatility index levels reflecting broader market unease.

Bitcoin Price Action and Analyst Commentary

Many Bitcoin traders focused on the potential for a higher low, suggesting a possible rally towards the $100,000 support level. Trader Jelle noted Bitcoin's quick recovery to range lows after the initial drop, indicating a potential positive sign. Daan Crypto Trades highlighted a pattern similar to previous consolidations, suggesting a potential "liftoff" after the range breakdown and retake.

Keith Alan, co-founder of Material Indicators, pointed to the 21-week simple moving average (SMA) as a key level. A weekly close above this SMA, which was subsequently achieved, was considered "extremely bullish." However, he also cautioned about potential resistance around $90,000.

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Disclaimer: This article does not provide financial advice. All investment decisions involve risk. Conduct thorough research before making any investment choices.