Bitcoin (BTC) Price Continues to Face Selling Pressure, Dropping to $81,500 Levels

Bitcoin's price continues to face selling pressure, dropping to around $80,00 levels. This represents a 2% correction from previous trading levels.

Bitcoin price has dropped to around $81,500 levels, marking a 2% correction from previous trading levels. The cryptocurrency has struggled to maintain momentum after being rejected at $89,000 in its attempt to rally past $90,000.

This price action is drawing attention as Bitcoin, along with the S&P 500 and Nasdaq indices, are set to form the Death Cross pattern in the coming weeks. This technical pattern is often associated with bearish momentum ahead.

Analysts are now debating whether BTC will break below the $80,000 mark before any potential upward movement. The correlation between Bitcoin and major US equity indices has been strong over the past several years, suggesting similar market behavior.

The S&P 500 has seen a massive sell-off, eroding $2 trillion of investor wealth during the last three trading sessions from Wednesday to Friday. The decline didn't stop when markets closed on Friday. S&P 500 futures plunged further, wiping out an additional $120 billion within minutes.

This is absolutely insane:

From Wednesday to Friday, the S&P 500 lost -$100 billion PER trading hour for a total of -$2 TRILLION.

Then, after the market closed on Friday, S&P 500 futures erased ANOTHER -$120 billion in minutes.

What happened? Let us explain.

(a thread) pic.twitter.com/Rc1GCF1876

— The Kobeissi Letter (@KobeissiLetter) March 29, 2025

Bitcoin faced a similar scenario after its attempted rally. Both markets showed brief signs of recovery in mid-March, but these gains were quickly erased when Trump imposed 25% auto tariffs. Further tariffs on Russia threaten to push Bitcoin price under the $80,000 threshold.

According to Barchart data, BTC and major indices are forming the death cross pattern.

Chart: Barchart.com

Occasions when prices fell ahead of these Death Crosses might mark a market bottom. The actual cross sometimes aligns with the end of a downward trend.

Challenging the “Digital Gold” Narrative

Economist Peter Schiff used this opportunity to criticize Bitcoin's status as "Digital Gold." He pointed out that traditional gold is trading in record territory above $3,090, reaching a new high of $3,097. Meanwhile, risk assets like stocks and Bitcoin continue to sell off.

The contrast between gold's performance and Bitcoin's recent struggles challenges the popular narrative of Bitcoin as digital gold. This comparison becomes more pointed during times of market stress.

While there's been a strong narrative that Bitcoin price will rally along with global M2 money supply, crypto analyst Ali Martinez urges caution. He noted that the global money supply has actually dropped by nearly $1 trillion over the past two weeks.

One of the current bullish narratives is that #Bitcoin $BTC will rally as global liquidity grows.

But what they aren't telling you is that the Global Money Supply dropped nearly $1 trillion in the past two weeks! https://t.co/FVwzeiKzQW pic.twitter.com/whEwEuG65K

— Ali (@ali_charts) March 30, 2025

This trend casts doubt on expectations of a liquidity-driven bullish outlook for Bitcoin. Martinez also reported that Bitcoin miners sold over 2,400 BTC during the past week, amounting to approximately $220 million.

Wider Crypto Market Impact

The altcoin market has been hit even harder than Bitcoin. Many cryptocurrencies have posted double-digit price declines on a weekly scale. This has pushed the total cryptocurrency market cap down to $2.75 trillion, representing a $250 billion drop from last week's peak.

The worst performers among larger-cap altcoins include SUI, HBAR, LEO, and XRP, with daily price declines of up to 8%. When viewed on a weekly timeframe, ETH, XRP, ADA, LINK, AVAX, HBAR, and LTC have all plunged by double digits.

Despite the overall market downturn, a few cryptocurrencies bucked the trend. CRO gained 20% while TON is up by 6%. However, these positive movements weren't enough to offset the broader market decline.

Bitcoin's market dominance has increased to 59.2% during this retracement, highlighting that alternative cryptocurrencies are experiencing more severe losses than Bitcoin itself. The total Bitcoin market capitalization now stands at $1.63 trillion.

Currently, Bitcoin is struggling to maintain a price above $82,000. This represents a $7,000 decrease from last week's levels. Trading volumes remain high at around $17.2 billion daily.

The BTC