Bitcoin (BTC) sold off at the Mar. 3 Wall Street open as US trade tariffs kept risk-asset traders on their toes.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Bitcoin braces for Trump “investment announcement”
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping below $90,000, shedding up to 5% on the day.
Initial excitement over the prospect of a US strategic crypto reserve saw weekly highs before sell-side pressure kicked in as TradFi returned.
A suggestion from US Commerce Secretary Howard Lutnick on CNN that President Donald Trump should decide on tariffs against Canada later on in the day contributed to a nervous open for stocks.
Bitcoin’s own reversal took its toll on longs, with cross-crypto liquidations passing $150 million in the four hours to the time of writing, per data from monitoring resource CoinGlass.
Crypto liquidations (screenshot). Source: CoinGlass
A positive note meanwhile came from anticipation over a reported “investment announcement” scheduled by Trump for 1:30 pm Eastern Time.
Commenting on the current climate, trading firm QCP Capital was among those calling for a balanced view going forward.
“Following last night’s clutch announcement, it’s likely that Trump will do whatever it takes to avoid presiding over a prolonged stock market drawdown, a topic he previously championed but struggled with in recent weeks,” it argued in its latest post to Telegram channel subscribers.
QCP noted raised VIX volatility index levels, reflecting what it called “broader market unease in risk assets overall.”
“Just when we think Trump has exhausted his cards, he may still have more surprises up his sleeve,” it concluded.
“Which key events could shape the market this week — and could they be the catalyst for that elusive all-time high?”
BTC price teases higher low
Bitcoin traders hoped for a higher low construction to play out on BTC/USD, fueling a potential rally toward lost support levels closer to $100,000.
Related: Biggest CME gap ever at $85K: 5 things to know in Bitcoin this week
“Bitcoin broke down from the range, dumped hard – and immediately climbed back up to reclaim the range lows,” popular trader Jelle wrote in one of the day’s X posts.
“Higher low around this area would be perfect. Let’s see.”
BTC/USD chart. Source: Jelle/X
Fellow trader Daan Crypto Trades compared range violations witnessed earlier in the bull run.
“$BTC Showing a similar pattern as the previous consolidations with this recent range breakdown and retake,” he told X followers.
“Expansion -> Range -> Breakdown -> Retake -> Liftoff.”
BTC/USDT perpetual swaps 3-day chart. Source: Daan Crypto Trades/X
The day prior, Keith Alan, co-founder of trading resource Material Indicators, flagged the 21-week simple moving average (SMA) as the key reclaim level.
A weekly close above it, which BTC/USD subsequently achieved, constituted an “extremely bullish” sign.
“That said, be prepared for strong resistance around $90k, and potentially for a fakeout above the 21-Week MA before reverting back to a support test,” he forecasted.
BTC/USD 1-week chart with 21SMA. Source: Cointelegraph/TradingView
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
