Bitcoin (BTC) tapped $92,700 during the early Asian hours on March 6, 19% above the Feb. 28 low of $78,200 as sentiment improved across the board.
The recent rejection at $94,500, however, raises questions about whether the BTC price could drop further over the next few days.
BTC/USD hourly chart. Source: Cointelegraph/TradingView
White House Crypto Summit: sell-the-news?
The White House Crypto Summit scheduled for March 7 has markets buzzing with optimism, expecting a pro-crypto framework. However, this could turn into a “sell-the-news” event, leading to another drawdown in crypto prices.
Key takeaways:
-
US President Donald Trump will host the first White House Crypto Summit on March 7.
-
The summit is aimed at bringing together industry leaders to discuss regulatory policies, stablecoin oversight, and the potential role of cryptocurrencies in the US financial system.
-
The attendees will include prominent industry leaders, including Founder of Strategy Michael Saylor, CEO of Ripple Brad Garlinghouse and CEO of Coinbase Brian Armstrong, along with members of the President’s Working Group on Digital Assets.
-
While Trump’s administration has signaled support for the crypto industry, the summit’s outcomes remain uncertain.
-
A heavy-handed regulatory approach—say, stringent KYC rules for Bitcoin holdings or taxation on unrealized gains—could spook investors.
-
Past crashes, like the 2022 downturn after Biden’s SEC crackdowns, show how sensitive Bitcoin is to policy shifts.
-
If the summit disappoints or introduces unexpected compliance burdens, we could see a sell-off, with Bitcoin tumbling 20-30% in days, as historical patterns suggest.
Previously, Bitcoin rebounded briefly following Trump’s announcement of a Strategic Crypto Reserve, but “this turned out to be another ‘sell-the-news’ event, with prices continuing to fall and trading below their pre-announcement levels,” market intelligence firm Glassnode said in its latest Week On-chain report.
After initially rising to $95,150 following the news on March 2, Bitcoin price tumbled 15% to a low of $81,483 on March 4.
Major assets: Price. Source: Glassnode
Related: Trump may be the “raging bull” of crypto, yet the EU may have the upper hand
Key Bitcoin price levels to watch
Bitcoin reached the $92,000 level on March 6 before retracing. Traders are now focused on key areas below this level, which BTC price might revisit in the near future.
Notably:
-
Bitcoin’s key levels to watch immediately on the downside are the major support at $87,200 and the 200-day simple moving average (SMA) at $82,908.
-
Below that, the first area of interest lies between two recent range lows at $81,463 (formed on March 4) and $78,200 (formed on Feb. 28).
-
BTC will potentially target the liquidity cluster around these levels if support at $90,000 is lost.
-
An immediate reprieve for the bulls would be a sharp reversal from this range, which will indicate buying interest below the 200-day SMA.
-
Otherwise, BTC could potentially test the next area of interest between $74,500 and $75,800 before filling the fair gap value below it at $70,000.
BTC/USD daily chart. Source: Cointelegraph/TradingView
-
The chart above also shows a key overhead resistance zone between $92,000 and $97,400 (where the 50-day and 100-day SMA appear to converge).
-
Overcoming this barrier would confirm the end of the downtrend as bulls set their eyes on $100,000 and beyond.
The short-term holder (STH) cost basis at $92,000 is a key level to watch because it has “historically acted as an important reference level across bull-market uptrends,” Glassnode analysts explained.
“Decisive reactions around Short-Term Holder Cost-Basis at $92k appear to be a key level to monitor for local momentum. If the market deteriorates further, the $71k region is a key area of interest.”
Bitcoin: STH cost-basis bands, hourly. Source: Glassnode
According to Glassnode, the active realized price is trading at $70,000, aligning with the STH-cost basis lower band, making it a key area of interest.
“With significant confluence across several key cost basis metrics, this price region becomes an area of interest, perhaps being the final defense line for the bulls in the event of a complete capitulation.”
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.
