Bitcoin’s Price Drops Below $90K: Understanding the US Crypto Reserve News
Introduction
Bitcoin, the world’s most famous digital currency, has had a big price drop recently. It fell below $90,000 after the US announced a new thing called the US Crypto Reserve[2]. This made some people sell their bitcoins, which caused the price to go down. Let’s find out why this happened and what it means for the world of cryptocurrency.
The US Crypto Reserve Announcement
On March 3, 2025, when the US announced the US Crypto Reserve, Bitcoin’s price went down fast[2]. This is called a “sell the news” situation, where people who were waiting for the news started selling their bitcoins to make a profit. This made the price go down for a short time. The market didn’t think Bitcoin’s price would keep going up, so people sold their bitcoins when the price was high.
Bitcoin’s Price Movement
To understand what’s happening with Bitcoin’s price, we can look at some technical things. The Relative Strength Index (RSI) went from 70 to 62, which means Bitcoin was not being bought too much anymore[2]. The Moving Average Convergence Divergence (MACD) showed that the price might go down more[2]. The Bollinger Bands got wider, which means the price was changing a lot[2]. More people were trading Bitcoin too, with 30% more trading on big exchanges like Coinbase and Kraken, reaching 50,000 BTC[2].
Important Price Levels
People are watching some important levels where the price might stop or turn around. The $80,400 level is near the 200-day moving average, which could stop the price from going down more[1]. Another important level is around $74,000, where people might start buying again because it’s near a line that connects many important points on the chart[1]. If the price goes up above a certain line, it could go up to $98,500, which is near the 50-day moving average[1]. If it goes above that, it might go up to $106,000 again[1].
Other Things Affecting Bitcoin’s Price
There are other things happening in the world that affect Bitcoin’s price too. People are worried about some rules in the US and a big hack that happened recently[3]. There haven’t been any new good things happening that might make the price go up, like new rules that are friendly to cryptocurrency[3]. Also, people are taking their money out of Bitcoin-backed ETFs, which is making the price go down[3].
Conclusion: Dealing with Price Changes
Summary and What’s Next
Bitcoin’s price going down below $90,000 shows that it’s still changing a lot in price. The US Crypto Reserve news made some people sell their bitcoins, and other things happening in the world are also affecting the price. As people try to deal with these changes, watching the important price levels will be very important. The price of Bitcoin and other cryptocurrencies are connected, so when something happens with one, it can affect the others too[2]. As Bitcoin keeps changing, understanding these things will help people deal with its ups and downs.
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Sources:
– Investopedia
– Blockchain.News
– PYMNTS
– The Street
