The post Bitcoin Price Will Drop to $75K By March: Derive’s Data Shows 22% Chances appeared first on Coinpedia Fintech News
Bitcoin’s (BTC) price fell to $91,180, reflecting a drop of 10% in the last 24 hours, and now there are growing fears that it could fall even further. According to Derive.xyz, the on-chain options market shows a 22% chance that Bitcoin could plummet to $75,000 by March 28. Here’s Why?
Why Bitcoin Might Drop to $75,000
The main reason behind the rising risk of Bitcoin dropping to $75,000 is the growing trade war between the U.S. and its key trading partners. The U.S. recently put new tariffs on imports from countries like China, Mexico, and Canada.
The tariffs, including a 25% tax on imports from Mexico and Canada, and a 10% tax on Chinese goods, are expected to raise inflation, making it harder for central banks to cut interest rates. If inflation goes up and the economy struggles, Bitcoin might take a hit.
Trump said in a statement that the tariffs were needed to protect the country from security threats like illegal immigration and drug trafficking.
However, responding to Trump’s new tariff rules, Canada announced its own 25% tariffs on U.S. goods while China threatened legal action against the U.S. at the World Trade Organization.
Earlier Warning of Bitcoin Crash
Recently Coindpedia news reported that Robert Kiyosaki already warned that Bitcoin might drop sharply due to Trump’s new tariffs coming into effect. At that time BTC was trading around $101K.
Meanwhile, Former BitMEX CEO Arthur Hayes, even predicted that BTC could fall to $75K before seeing a major rally. As of now, Bitcoin seems to be following a pattern called a “double top reversal,” which could lead to a drop-down to $75,000.
Bitcoin’s Key Levels to Watch
Amid the bearish sentiment, Bitcoin’s price movements are being closely monitored. Key technical indicators show troubling signs, such as the Relative Strength Index (RSI) falling below 50, signaling a strong bearish trend.
Additionally, the Moving Average Convergence Divergence (MACD) shows a bearish crossover, which points to further downward movement.
However, Bitcoin needs to hold above certain levels to avoid a further larger drop. If Bitcoin fails to hold above $90,500, it could test $85,000 next. On the other hand, resistance lies near $95,000, and a recovery above $96,500 could restore bullish momentum for Bitcoin.