Bitcoin (BTC) Price Has Crashed by Another 4.5% Taking a Dip to $80,350 Levels as Market Sentiment Turns Bearish

Bitcoin price has once again come under heavy selling pressure, facing strong rejection at $92,500 and extending weekly losses to more than 11.15%.

Bitcoin price crashed by another 4.5% on Monday, taking a new seven-week low of $80,350 as market sentiment soured ahead of the US CPI data later this week. The overall crypto market crash over the last 24 hours also wiped out over $170 billion of investors’ wealth.

Will Bitcoin Price Crash to $75,000?

Bitcoin price faced strong resistance at $92,500 and encountered strong selling pressure, extending weekly losses to more than 11.15%. Popular crypto analyst Ali Martinez highlighted that over $1 billion in Bitcoin (BTC) long positions were liquidated today. The massive liquidation showcases the immense market volatility currently impacting the cryptocurrency sector.

However, veteran trader Peter Brandt shared a technical analysis suggesting the recent price action confirms a bearish outlook. In the latest chart structure, Brandt identified three critical technical developments hinting at further downside pressure.

The analysis highlights a double top formation with peaks at approximately $108,100, followed by a bearish pennant pattern. According to Brandt, Bitcoin made a “deep retest” of its previous high near $95,321 before breaking through the pennant formation.

The chart also indicates that Bitcoin price found temporary support at $81,513 following the breakdown, but the completion of the bearish pattern suggests further downside potential. Former BitMEX CEO Arthur Hayes also believes that there could be more pain left ahead for BTC. He wrote:

“An ugly start to the week. Looks like $BTC will retest $78k. If it fails, $75k is next in the crosshairs. There are a lot of options OI struck $70-$75k, if we get into that range it will be violent”.

Will BTC Enter Bear Market After US CPI?

Several market analysts believe that Bitcoin is finally entering a bear market as market sentiment deteriorates despite the launch of the Bitcoin Strategic Reserve. Furthermore, the initiative has revealed an apparent lack of intent to purchase anything beyond seized BTC.

On the other hand, institutional demand for Bitcoin has dried up significantly, as evident by the massive outflows from Bitcoin ETFs. Between March 3 and March 7 (ET), Bitcoin spot exchange-traded funds (ETFs) experienced significant outflows, signaling waning investor sentiment in the market.

The Space Bitcoins Strategic Reserve initiative has been launched to accumulate 1,200 Bitcoin (BTC) in order to bolster the country’s digital assets. However, the initiative’s progress has been slow, and it appears that no new purchases are planned in the immediate future.

According to Space Bitcoins’ latest update, the total BTC holdings have remained stagnant at 1,180, and there are no immediate plans to increase these holdings. The initiative’s focus is now on expanding its activities in other cryptocurrencies.

Recently, Space Bitcoins completed the purchase of another 300 units of LINK, bringing the total LINK holdings to 500. Additionally, the initiative has begun investing in other cryptocurrencies, including APE, ADA, and MATIC.

These investments are part of a broader strategy to diversify the portfolio and maximize returns for investors. As the cryptocurrency market continues to evolve, Space Bitcoins is committed to adapting and expanding its investment activities to capitalize on new opportunities.

However, institutional demand for Bitcoin has dried up significantly, as evident by the massive outflows from Bitcoin ETFs. Between March 3 and March 7 (ET), Bitcoin spot exchange-traded funds (ETFs) experienced significant outflows, signaling waning investor sentiment in the market.

According to Benzinga's analysis of relevant data from True Blocks, the total outflows from Bitcoin ETFs during the period amounted to $799 million. Among the affected ETFs is Fidelity’s Bitcoin ETF (FBTC), which saw an outflow of $201 million.

Moreover, the report notes that the majority of the Bitcoin ETF outflows occurred on March 3, coinciding with a broader selloff in the stock market. The S&P 500 index slid by 1.2% on that day, while the Dow Jones Industrial Average dipped by 0.8%.

Among the largest institutional investors, BlockFi disclosed a new Bitcoin purchase in the range of $50 to $250 million during the last quarter. Additionally, several other institutional investors like Harvest, iShares, and State Street Global Advisors also made smaller investments in Bitcoin ETFs.