Highlights:
- Bitcoin’s price drops as trade war escalation shakes markets
- Despite market weakness, Bitcoin finds strong support at $84,971
- A strong bounce off the $84,971 support could trigger a rally to $90k short-term
Bitcoin has dropped sharply today, mirroring the instability across the financial markets. At the time of writing, BTC was valued at $85,104.15, a 2.75% decrease within the last 24 hours. Nevertheless, there was an 18.43% increase in trading volume worth $30.22 billion, suggesting active participation from traders.
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Stock Market Decline Impacts Investor Sentiment Towards BTC
The drop in Bitcoin’s value coincides with a decline in global stock markets, which have all experienced a downturn in the last 48 hours. With the amalgamation of economic and geopolitical news, like President Trump’s recent tariff announcement, there has been a continuous buildup of uncertainty for investors.
On Wednesday, Trump announced a blanket 25% tariff on imported automobiles and auto components that will begin March 2. This has further heightened trade war tensions, leading to strong rebuttals from Canadian Prime Minister Mark Carney. Carney responded by saying that the U.S.-Canada trade deal was “done” and that it needed to be rethought. He also promised to strike back should these tariffs come to fruition.
Trump discovered that he has almost total authority over tariffs. So now he’s like a kid beating his drum.
Trump sets auto tariffs at 25%, drawing swift backlash. ‘The tariffs announced today will harm—not help,’ says world’s largest business association https://t.co/mQh7AS4p8U
— John Oberlin (@OMGno2trump) March 27, 2025
Apart from automobile tariffs, Trump is also looking to impose wider reciprocal tariffs on countries with trade deficits involving the U.S. These policies have exacerbated worries over a looming global trade war, driving investors away from risk-on assets like equities and cryptocurrencies.
GameStop’s Price Drop Signals Weak Investor Sentiment In Bitcoin
GameStop’s price action also points to a market where investors do not see BTC as the best play at the moment. The value of GameStop’s (GME) stock plummeted approximately 25% on Thursday after it revealed it would raise $1.3 billion through convertible notes to purchase Bitcoin.
The company’s decision to spend profits on purchasing Bitcoin had fueled a 12% surge in the market, but the financing plan most put investors off. This is quite different from when MicroStrategy started taking debt to buy Bitcoin. It could signal that investors expect Bitcoin to do badly under current macroeconomic conditions.
Checkmate. GameStop is raising $1.3 BILLION, not for stock buybacks, not for debt repayments… but to BUY #Bitcoin. The biggest retail army in history just joined the hardest money in history.
GME + BTC = THE FINAL BOSS FIGHT.
The game is about to go parabolic. pic.twitter.com/VmU1FIq77g— Michael Saylor ⚡ Founder of MicroStrategy (Parody) (@Saylorsatsire) March 26, 2025
Technical Indicators Point to the Possibility of Bitcoin Breakout
However, some analysts believe Bitcoin could pull a surprise move and rally to new highs. For instance, cryptocurrency trader and analyst Kevin Svenson is certain about BTC’s breakout. He cites breakouts on the RSI, bullish movements on MACD, and positive momentum on Bitcoin as indicators of a breakout. According to Svenson, Bitcoin is capable of reclaiming $98,000 after a 13% rise, which is very likely to happen in the coming future.
BTC Volatility Due to Expiry of Options
Other factors besides technical analysis support such a move. BTC options valued at $16.5 billion will expire today, March 28. This could be bullish because if Bitcoin stays around $86,500 by March 28, only $2 billion worth of put options would come into play. But if bears manage to push Bitcoin under $84,000, the value of active put options would increase to $2.6 billion, and selling pressure would be magnified.
🚨 $16.5 BILLION WORTH OF BITCOIN
OPTIONS SET TO EXPIRE TODAYEXPECT HIGH VOLATILITY !! pic.twitter.com/kypIGnNUyd
— H. Gökhan Güleç (@gokhangulec) March 28, 2025
Technical Analysis – BTC Trading at Critical Support
After a correction for the better part of the last 24 hours, Bitcoin has found support at the $84,971 support level. If there is a strong bounce off this support level, then Bitcoin could rally to $86,421 in the short term.
On the other hand, if Bitcoin bears regain control and push the price through the $84,971 support, then a correction to $80k or lower could follow.
Recap
In light of the ongoing trade war and other economic uncertainties, BTC’s price remains volatile. While risks of declining price levels exist short-term, technical indicators and interest from institutional investors point to a potential rebound. A retest of $90k could be in the cards in the short term.
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