Bitcoin price prediction: BTC rebounds 3% after four-day sell-off liquidated $240M
Bitcoin drops to $80,000 as liquidations exceed $620 million.
Bitcoin price has faced consecutive bearish price movements over the past four days, with its valuation dropping to a nine-day low at $80,000.
This decline triggered significant market liquidations, impacting over 220,000 traders. According to CoinGlass data, total liquidations in the past 24 hours reached approximately $620 million, with BTC trades contributing around $240 million.
The sell-off pressure was primarily driven by increased short positions and profit-taking after Bitcoin’s recent rally towards $90,000. Additionally, macroeconomic uncertainty and concerns over potential regulatory actions in major markets contributed to a risk-off sentiment, prompting traders to reduce exposure.
Bitcoin RSI recovers from oversold levels, but bearish pressure persists
Bitcoin price dynamics (Feb 2025 - March 2025). Source: TradingView.
Following the sharp drop, Bitcoin has rebounded by 3% in today’s Asian session, recovering to around $82,300. This price action has pulled the Relative Strength Index (RSI) from oversold levels back into bearish territory, indicating that sellers could still be active in the market. The key resistance now stands at $84,400, a level that must be breached for Bitcoin to revisit the $90,000 region. On the downside, the $80,000 support remains critical in preventing a further slide into the $70,000 range.
Sentiment analysis supports the notion that short sellers remain dominant. The liquidations suggest aggressive leverage in long positions, which were caught off guard by the downturn. A failure to reclaim $84,400 could embolden bears to attempt another breakdown below $80,000.
However, a contrarian view suggests that Bitcoin’s ability to hold above $80,000 despite liquidation pressure signals strong demand at lower levels. If buying interest strengthens and macroeconomic conditions stabilize, Bitcoin could regain its upward momentum toward $90,000 in the coming sessions.
The U.S. government's announcement of a Strategic Bitcoin Reserve triggered a 7% drop in Bitcoin. The price struggled to hold momentum in March, extending its broader downtrend.
