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Bitcoin (BTC<\/a>) tapped $88,700 this week but has since corrected to just below $87,000 on March 27.\u00a0<\/p>\n The recent rejection from the $88,000 resistance level raises questions about whether BTC price could drop further over the next few days.<\/p>\n BTC\/USD four-hour chart. Source: Cointelegraph\/<\/em>TradingView<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n On March 26, 2025, President Trump announced a 25% tariff<\/a> on all cars and light trucks imported into the US, set to take effect on April 3. Market participants are concerned this might trigger another sell-off in cryptocurrencies, pushing prices lower.<\/p>\n Key takeaways:<\/p>\n The 25% tariff on automobile imports targets major trading partners like Mexico, Canada, Japan, and Germany.<\/p>\n<\/li>\n While Trump touts this as a boon for the American automotive industry, the immediate fallout will likely rattle global markets.<\/p>\n<\/li>\n For instance, when Trump imposed tariffs on Canada, Mexico, and China in early March, Bitcoin dropped<\/a> from $105,000 to $92,000 overnight before partially recovering.\u00a0<\/p>\n<\/li>\n These broader auto tariffs could amplify this effect, especially as markets brace for retaliatory measures from affected nations.<\/p>\n<\/li>\n<\/ul>\n Commenting on the current risk-asset landscape, trading firm QCP Capital emphasized the effects of US President Donald Trump\u2019s trade tariffs, saying that they could escalate trade tensions.\u00a0<\/p>\n \u201cAny further retaliation from these target economies risks injecting a fresh wave of uncertainty into an already volatile global trade landscape,\u201d it wrote in a Telegram note to investors.\u00a0<\/p>\n QCP also pointed out that \u201csentiment remains subdued despite headline-grabbing catalysts\u201d such as GME\u2019s surprise $1.3 billion<\/a> capital raise for potential Bitcoin purchases.\u00a0<\/p>\n The only positive catalyst is the steady inflow into spot BTC ETFs<\/a>, totaling $944.9 million since March 11, adding:<\/p>\n \u201cThis presents a telling divergence that reflects the market\u2019s bifurcated institutional conviction.\u201d<\/p><\/blockquote>\n Demand for Bitcoin remains relatively low, implying a decline in risk appetite for potential investors, according to market intelligence firm Glassnode.<\/p>\n Related: <\/strong><\/em>Bitcoin price prediction markets bet BTC won’t go higher than $138K in 2025<\/strong><\/em><\/a><\/p>\n What to know:<\/p>\n This week\u2019s onchain report from Glassnode highlights<\/a> a contraction in Bitcoin\u2019s demand measured by assessing the volume of realized profit and loss locked in by investors.<\/p>\n<\/li>\n This provides important information on the sell-side forces occurring across spot markets.<\/p>\n<\/li>\n Bitcoin\u2019s combined realized profit and loss volumes have \u201cexperienced a major contraction\u201d since the all-time high above $109,000<\/a>, collapsing by 85% from $3.4 billion to $508 million on March 26.<\/p>\n<\/li>\n This metric is now at similar levels seen during the 2024 accumulation zone between $50,000 and $70,00, suggesting a similar demand profile.<\/p>\n<\/li>\n<\/ul>\n Bitcoin: Absolute realized profit and realized loss. Source: <\/em>Glassnode<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Sustainable bull markets are typically characterized by consistent and growing inflows of fresh capital entering the network (capital inflow from new investors).<\/p>\n<\/li>\n The difference between long-term holder (LTH) profit taking and short-term holder (STH) loss realization has dropped sharply since the $109,000 record high and returned to a \u201cneutral zone.\u201d<\/p>\n<\/li>\n This means that an equivalent volume of STH losses is now offsetting LTH profits, the report explained, adding:<\/p>\n<\/li>\n<\/ul>\n \u201cThis suggests a relative stagnation in new capital inflows, weaker demand-side forces, and a slowing but still meaningful volume of profit taking acting as resistance.\u201d<\/p><\/blockquote>\n Bitcoin: Difference between LTH realized profit and STH realized losses. Source: Glassnode<\/em><\/p>\n<\/figcaption><\/figure>\n Glassnode concludes that while the STH cohort is dominating losses taken, the LTH cohort is transitioning back into a period of accumulation, which could be a precursor to Bitcoin\u2019s recovery.<\/p>\n \u201cWe expect their aggregate supply to grow in the coming weeks and months as a result.\u201d<\/p><\/blockquote>\n As reported<\/a> by Cointelegraph, Bitcoin LTHs continued to hold profits despite the recent sell-off, indicating a strong belief that the bull market rally would eventually resume.<\/p>\n Traders are now focused on key areas around the $88,000 level.<\/p>\n Notably:<\/p>\n Bitcoin’s key levels to watch immediately on the downside are the 200-day simple moving average<\/a> (SMA) at $85,500 and the major support at around $82,700.\u00a0<\/p>\n<\/li>\n The first area of interest lies between two recent range lows: $81,138 (formed on March 18) and $76,600 (formed on March 11).<\/p>\n<\/li>\n BTC will potentially target the liquidity cluster around these levels if support at $82,000 is lost.<\/p>\n<\/li>\n An immediate reprieve for the bulls would be a sharp reversal from this range, indicating buying interest below the 200-day SMA.<\/p>\n<\/li>\n If support is lost, BTC could test the next area of interest between $72,200 and $74,500 before filling the fair gap below it toward $70,000.<\/p>\n<\/li>\n<\/ul>\n BTC\/USD daily chart. Source: Cointelegraph\/<\/em>TradingView<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n The chart above also shows a key resistance zone between $88,700 and $92,000 (where the 50-day and 100-day SMA currently sit).<\/p>\n<\/li>\n Overcoming this barrier would confirm the end of the downtrend as bulls set their eyes on $100,000 and beyond.<\/p>\n<\/li>\n<\/ul>\n Popular analyst Decode said<\/a> the 20-weekly exponential moving average (EMA) at $88,600 is the \u201cmost important level right now for Bitcoin.\u201d<\/p>\nCould Trump\u2019s tariffs drive Bitcoin prices lower?<\/strong><\/h2>\n
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Bitcoin could drop further on waning demand<\/strong><\/h2>\n
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Key Bitcoin levels to watch<\/strong><\/h2>\n
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