Bitcoin started the week strong, reaching $88,500 on Monday, March 24, giving investors hope for a sustained rally. However, by Friday, March 28, the price had dropped back to $84,000, erasing most of its gains.
Why Is Bitcoin Dropping?
The recent price correction came after the release of new inflation data in the United States. The report suggested that the US Federal Reserve may delay interest rate cuts, making investors more cautious about riskier assets like cryptocurrencies. As a result, Bitcoin and other digital assets faced strong selling pressure by the end of the week.
Could Bitcoin Crash to $62,000?
Crypto analyst Crypto Capo has warned that Bitcoin could be heading for a significant drop. Based on his analysis of the 12-hour chart, he believes $84,000 – $85,000 is a critical price level that could determine Bitcoin’s next move.
🔹 Scenario 1: A Fake Rally Before a Drop
- Bitcoin could briefly rise to $95,000 – $100,000, making it seem like a strong uptrend is forming.
- However, this would be a bull trap—a deceptive rally that tricks investors into buying before prices crash.
- After this, Bitcoin could drop sharply to its next major support between $62,000 – $69,000.
🔹 Scenario 2: A Direct Drop Without a Fake Rally
- If Bitcoin fails to stay above the $84,000 – $85,000 range, it could skip the fake rally and immediately fall to the $62,000 – $69,000 level.
This prediction is based on Bitcoin’s historical support levels, which have acted as strong price floors in previous market cycles. For instance, in April and November of past years, similar price ranges served as major turning points for Bitcoin.
Bitcoin’s Current Price and Market Performance
At the time of writing, Bitcoin is trading around $83,300, reflecting a 3% decline in the last 24 hours. This means that the early-week gains have been erased, and Bitcoin’s price has remained mostly flat over the past seven days, according to CoinGecko data.
What’s Next for Bitcoin?
With market uncertainty high, all eyes are on Bitcoin’s key price levels. If Bitcoin can stay above $85,000, it might see another attempt at reaching new highs. But if it falls below this level, a deeper correction could be on the horizon.
For now, investors will be watching closely to see how Bitcoin reacts in the coming weeks. Will it bounce back or continue to slide toward $62,000?
