Bitcoin’s price has dropped for the fourth consecutive day, influenced by concerns over inflation and new tariffs introduced by President Trump. Veteran trader Peter Brandt suggests a potential decline to $65,635, as technical indicators appear bearish. Despite market challenges, there are positive regulatory developments for the cryptocurrency industry, with the FDIC clarifying banks’ capabilities to engage in crypto services.

On March 28, Bitcoin’s price continued to decline, marking its fourth consecutive day of losses, reaching an intra-day low of $83,387. This downward trend aligns with the substantial sell-off on Wall Street, where the DOW fell by 700 points and the S&P 500 index decreased by 112 points. These declines are largely attributed to growing investor concerns over inflation, particularly following the rise in the core Personal Consumption Expenditures index to 2.8%.

Additionally, market reactions to President Trump’s newly introduced reciprocal tariffs, imposing a 25% tariff on imported vehicles not manufactured in the United States, further intensified the turmoil. As traders observe the approaching date of April 2—designated by Trump as “Liberation Day”—anticipations of additional tariffs, including those on pharmaceuticals, create uncertainty regarding the potential for a Bitcoin recovery.

Veteran trader Peter Brandt has suggested that Bitcoin may be headed towards $65,635. In a post on social media platform X, Brandt noted the completion of a “bear wedge” pattern in Bitcoin’s chart, stating, “Don’t shoot the messenger. Just reporting on what the chart says until it says something different. Bear wedge completed with 2X target from the double top at $65,635.” Crypto trader ‘HTL-NL’ aligns with Brandt’s assessment, indicating that Bitcoin’s inability to break through a long-term descending trendline supports the notion of revisiting range lows.

From a technical perspective, a rapid reversal in Bitcoin’s price seems unlikely, given that many daily timeframe metrics are not in an oversold condition. Nevertheless, crypto trader Cole Garner points out that “whales are going wild right now.” He highlights a significant signal from the Bitfinex spot Bitcoin margin longs to margin shorts metric, which has demonstrated historical returns exceeding 50% within 50 days.

Despite the ongoing market turbulence, there are positive developments in the regulatory landscape for the cryptocurrency sector. On March 28, David Sacks, the White House AI and Crypto Czar, praised the FDIC, particularly its Acting Chairman Travis Hill, for providing clarity regarding banks’ engagement in cryptocurrency-related activities. The FDIC’s communication assured institutions under its guidance that they can offer crypto-related products and services without the need for prior notification to the FDIC.

In summary, Bitcoin has experienced a notable decline alongside significant market sell-offs, now facing potential lows amid a bearish wedge pattern identified by traders. Although technical indicators do not suggest an immediate recovery, the actions of major investors, or “whales,” coupled with regulatory advancements signal possible undercurrents of change in the industry. Traders and investors are advised to remain cautious and conduct thorough research before taking any actions in this volatile market.

Original Source: cointelegraph.com

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