The Crypto Market Is Prepared for Increased Volatility as ‘Liberation Day’ Approaches

The crypto market is prepared for increased volatility, with analysts warning of significant price swings tied to Liberation Day

The crypto market is preparing for increased volatility as Liberation Day approaches, according to financial analysts. This term, established by analysts at InvestOut, refers to a period of severe economic or political shifts that typically occur every 40 to 50 years, leading to drastic market shifts.

With the upcoming events at the beginning of March and President Donald Trump’s influence on financial policies, investors are anticipating unpredictable trends. A recent analysis by Benzinga mentions a report by PointLogics highlighting a 70% increase in Trump's posts related to Bitcoin (CRYPTO: BTC) on Truth Social since March. This attention might be due to Trump's anticipation of the upcoming events that could impact BTC’s trajectory, leading to new highs. Given the uncertainty traders are monitoring signals to refine their Bitcoin price prediction and prepare for potential risks.

Crypto Market Faces Uncertainty as ‘Liberation Day’ Approaches

The concept of Liberation Day is gaining attention, with many predicting its impact on the crypto market. Political and economic developments shape investor mood, and historical trends indicate that such turning periods frequently result in higher market volatility. Experts from Benzinga suggest that significant price changes may be on the horizon.

Analysts from InvestOut believe that policy changes especially related to financial regulations, could play a key role in BTC’s price action. Market participants are also evaluating Trump's economic ideas, which might either stimulate or restrict crypto adoption.

As Bitcoin trades within key resistance and support levels, market strategists emphasize the importance of technical indicators in refining Bitcoin price prediction models. Some foresee a bullish breakout, while others caution that increased volatility could trigger sudden corrections.

Regardless of the outcome, investors are advised to stay prepared for rapid price shifts. The coming months will be crucial in determining whether Liberation Day leads to new market highs or increased uncertainty for crypto traders.

Bitcoin Breaks Above $87,911.18

The trading day of March 23rd started with a golden cross at midnight, sparking an upward trend. By 2:50 UTC, an overbought condition signaled strong momentum. A golden cross at 10:30 UTC fueled the rally. However, resistance at $85,026.88 held firm despite RSI overbought at 10:40 UTC and 11:05 UTC.

At 13:30 UTC, Bitcoin faced another overbought situation but failed to break resistance, leading to a death cross at 17:25 UTC and a downward trend. However, at 21:50 UTC, a golden cross revived the upward movement, and by 22:10 UTC, Bitcoin broke resistance.

As illustrated in Chart 1, Continuous overbought conditions at 23:30 UTC, 23:55 UTC, and 00:30 UTC (March 24th) pushed Bitcoin to form a new resistance at $86,642.05. A death cross at 00:50 UTC caused some retracement, but at 2:35 UTC, another golden cross drove Bitcoin upward.

The breakout at 4:00 UTC extended the upward trend, as RSI remained overbought at 4:45 UTC and 5:00 UTC. A subsequent overbought condition at 10:35 UTC led the price to establish a new resistance at $87,911.18.

According to the Bitcoin price prediction, if the price continues its upward trend, it could break the current resistance of $87,911.18. Alternatively, if the price reverses, it could test support at $86,642.05 before determining the next move.