Just a day after cryptocurrencies surged following President Donald Trump’s announcement of the US Crypto Strategic Reserves, Bitcoin took a sharp dive, dropping nearly 10% and erasing its earlier day gains to hit $83K. Meanwhile, crypto analyst Egrag Crypto warns that Bitcoin could fall even further, potentially reaching $73K by April 1st before making its next big move.
Key Levels to Watch
According to Egrag Crypto, Bitcoin is forming a Bearish Engulfing Candle on the 3-day timeframe, which could lead to more downside. This pattern was confirmed when Bitcoin fell below $90K, breaking a key support level.
Meanwhile, if this trend continues, Bitcoin could first fall to $80.5K before testing the critical $73K level near a crucial blue channel, which may determine its next major move.
Adding to the concerns, the Moving Average Convergence Divergence (MACD) remains in a bearish trend, suggesting that Bitcoin could still face more downward pressure before any bullish recovery.
Short-Term Dip or a Buying Opportunity?
However, not all indicators suggest further declines. The Relative Strength Index (RSI) shows that Bitcoin is nearing oversold levels, which could increase the chances of a rebound if buying pressure returns.
Looking at historical trends, Bitcoin has often experienced temporary pullbacks before resuming its uptrend. A drop to $73K may not signal a bearish shift but could instead act as a final accumulation phase before the next surge.
The blue channel, as highlighted by Egrag Crypto, remains a crucial factor in determining the strength and duration of this market trend.
If Bitcoin manages to hold above this level, it could pave the way for the next phase of the bull run.
