Bitcoin risks closing the week below $82,000, triggering $1.13 billion in leveraged long liquidations. Investors express frustration as the U.S. Strategic Bitcoin Reserve fails to meet expectations. The lack of direct federal BTC purchases has dampened sentiment, pressuring prices further. Analysts warn a weekly close under this level could accelerate declines.
Trump’s BTC Reserve Strategy
President Trump’s March 7 executive order outlined plans for a Bitcoin reserve using seized assets, not active purchases. Markets reacted negatively, with Bitcoin sliding below $90,000.
Bitfinex analysts noted the move “tempered expectations” of institutional support. Investors had hoped federal accumulation would boost prices, but stagnant policy shifts stifled optimism. The asset trades 10% below its March 7 peak.
$1.13B Liquidation Threat
A drop below $82,000 could liquidate over $1.13 billion in leveraged positions, per CoinGlass data. Such a sell-off may exacerbate volatility, testing investor resolve. Currently, Bitcoin hovers near $83,200, flirting with the 200-day moving average. Historically, breaching this level has led to sharp corrections. However, some analysts suggest the market could stabilise if bulls defend key supports.
Macroeconomic Headwinds
Tariff wars and Federal Reserve policies now overshadow crypto narratives. Nexo’s Iliya Kalchev states Bitcoin’s short-term trajectory hinges on U.S. economic data, including CPI and job reports.
Fed Chair Powell’s cautious rate outlook and escalating U.S.-China trade tensions add pressure. IntoTheBlock observed Bitcoin’s 4% drop post-Trump announcement, signalling macro factors dominate. Strengthening BTC-stock correlations further highlights shifting priorities.
Technical Indicators Hint at Potential Rebound
Bitcoin’s daily Relative Strength Index (RSI) hit 26, signalling oversold conditions. Analyst Rekt Capital notes similar levels preceded local bottoms this cycle. Despite bearish momentum, this suggests a rebound may emerge. Failure to hold $82,000 risks cascading liquidations. Traders await clarity as RSI divergence and volume trends offer conflicting signals.
200-Day SMA Becomes Battleground for Bulls and Bears
Bitcoin’s test of the 200-day SMA at $83,200 marks a critical inflection point. Previous dips below this average in February and March triggered swift recoveries. However, sustained macro uncertainty, which includes tariff retaliations and Fed policy, could weaken support. Analysts warn a prolonged breakdown might invite deeper losses, while a bounce could revive bullish momentum.
Navigating Uncertainty
Bitcoin balances between technical supports and macroeconomic crosscurrents. While oversold signals hint at relief, looming liquidations and tariff risks weigh heavily. Investors now eye U.S. economic data and SMA defences to gauge direction. As Trump’s reserve plan underwhelms, crypto’s sensitivity to policy shifts remains evident. The week’s close will likely set the tone for Bitcoin’s volatile path ahead.
