Bitcoin’s Price Drops Below $90K: Understanding the US Crypto Reserve News
Introduction
Bitcoin, the world’s top cryptocurrency, has seen its price fall below $90,000 recently. This happened after the US announced a new crypto reserve, which made some investors sell their bitcoins[2]. Let’s find out why this happened and what it means for the crypto world.
The US Crypto Reserve Announcement
On March 3, 2025, Bitcoin’s price went down after the US announced a new crypto reserve[2]. When big news like this happens, some traders sell their bitcoins to make a profit. This is called “sell the news.” It seems like traders didn’t think the news would make Bitcoin’s price go up for a long time[2].
Bitcoin’s Price Movement
Let’s look at some charts to understand Bitcoin’s price better. A tool called the Relative Strength Index (RSI) shows that Bitcoin moved from being overbought to a more balanced state[2]. Another tool, Moving Average Convergence Divergence (MACD), shows that Bitcoin’s price might go down more[2]. The lines on a chart called Bollinger Bands moved apart, which means Bitcoin’s price is changing quickly[2]. More people traded Bitcoin on big exchanges like Coinbase and Kraken, with 30% more trading volume, reaching 50,000 BTC[2].
Important Price Levels
Traders are watching some key levels where Bitcoin’s price might stop or turn around. If Bitcoin’s price goes down to around $80,400, it might stop there because that’s near a line called the 200-day moving average[1]. Another important level is around $74,000, where people might buy more Bitcoin because it’s near a line that connects many peaks on the chart[1]. If Bitcoin’s price goes up and passes a line called the double top’s neckline, it might reach $98,500, which is near another moving average line[1]. If it goes above this area, it might go back up to $106,000[1].
Other Things Affecting Bitcoin’s Price
Besides the US crypto reserve news, other things are also making Bitcoin’s price change. Some people are worried about tariffs in the US and a big crypto hack that happened recently[3]. There aren’t many new reasons to buy Bitcoin right now, like new rules that are friendly to cryptocurrencies[3]. Also, some investors are selling Bitcoin-backed ETFs, which means they’re taking their money out of Bitcoin[3].
Navigating Volatility
Summary and What’s Next
Bitcoin’s price going below $90,000 shows that it’s still very changeable. The US crypto reserve news made some people sell their bitcoins, and other things are also affecting Bitcoin’s price. To deal with these changes, it’s important to watch the key levels where Bitcoin’s price might stop or turn around. Bitcoin’s price can also affect other cryptocurrencies and AI tokens[2]. As Bitcoin keeps changing, understanding these things will help us navigate its volatile world.
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Sources:
– Investopedia
– Blockchain.News
– PYMNTS
– The Street