Bitcoin price declined 3% on Tuesday, March 12, testing new weekly timeframe lows around $81,000
CryptoQuant analysts have flagged a historical bearish pattern involving major sell-offs among long-term holders.
BTC technical indicators reflect a strong support cluster around the $77,000 level, despite bearish market speculations from CryptoQuant CEO, Ki Jeung Seung.
Bitcoin price tumbled 3% on Tuesday as investors turned cautious ahead of the US Fed meeting. The sudden dip triggered widespread liquidations, erasing earlier bullish momentum that had kept BTC near $84,000.
CryptoQuant analysts warn that continued selling pressure could extend Bitcoin’s correction, with downside risks pointing toward $78,000.
Advertisement
Bitcoin (BTC) tumbled 3% as bearish speculations swirl ahead of US Fed Meeting
Bitcoin (BTC) wobbled on Tuesday triggering cascading liquidation across the derivatives markets. Having held steady around the $84,000 level since the start of the week, supported by bullish tailwinds from positive events like Microstrategy listing $500 million worth of shares for sale to fund further BTC purchases.
Bitcoin price action | BTCUSD | Coinmarketcap
BTC price succumbed to bearish pressure on Monday. However, bearish narrative overshadowed the market discourse Tuesday, especially with investors already leaning cautious ahead of the US Fed rate decision expected on Wednesday.
Advertisement
CryptoQuant analysts say Bitcoin bear market could last 6 to 12 months
CryptoQuant analysts warn that Bitcoin faces a potential bear market lasting six to twelve months, unsettling the cryptocurrency’s community. The firm’s CEO Ki Young Ju first alerted the community to a stern prediction.
#Bitcoin bull cycle is over, expecting 6–12 months of bearish or sideways price action.
In response to this comment, another Cryptoquant analyst Maartun flagged a previous past trading pattern where long-term holders dumped 827,783 BTC in December 2024.
CryptoQuant analysts hint a Bitcoin bear market signals | March 18 | Source: X.com
This traction occurred just before the ongoing correction phase began after Trump’s inauguration in January. A repeat of the pattern could see BTC struggle for momentum in the months ahead.
Optimism from MicroStrategy’s announcement of a $500 million share sale to boost its BTC reserves, had kept Bitcoin prices near $84,000 until the sharp reversal on Tuesday.
CryptoQuant’s CEO Aarun states bluntly, “Mass sales by long-term holders signal a major shift, not a minor blip.”
With the US Federal Reserve’s rate decision looming on Wednesday, uncertainty intensifies. Investors now confront the reality that this decline may mark the start of a prolonged bearish phase, not a brief dip.
Bitcoin Price Forecast: BTC Risks Drop to $78,000 as Momentum Weakens
Bitcoin price forecast shows continued weakness, trading at $82,090 after a 2.28% drop, with downside risks increasing as BTC fails to break resistance at $84,217. The 50-day and 100-day SMAs at $92,215 and $95,582, respectively, indicate a bearish trend, while the green trend-line offers last support before a potential breakdown.
Bitcoin Price Forecast
The negative Balance of Power (BBP) at -2,959 suggests sellers remain in control, with persistent selling pressure preventing a meaningful rebound. If BTC loses support at $80,000, the next key level to watch is $78,000, where bulls could attempt to regain momentum. A sustained drop below this level may accelerate losses towards $75,000.
On the flip side, a break above $84,217 could signal a shift in sentiment, opening the door for a rally towards $88,000. However, with BTC trading below key SMAs and BBP deep in the red, the bearish outlook remains dominant unless a strong buying surge reverses the trend. The upcoming Fed rate decision will likely determine BTC’s next major move, with volatility expected to increase in the short term.
Advertisement
Frequently Asked Questions
Why is Bitcoin dropping ahead of the Fed meeting?
Bitcoin is under pressure as investors brace for the Fed’s rate decision, which could impact liquidity and market sentiment.
What key support levels should traders watch?
BTC faces critical support at $80,000, with further downside risk toward $78,000 if selling pressure continues.
Could Bitcoin rebound despite the bearish outlook?
A breakout above $84,217 could trigger a short-term rally toward $88,000, but market uncertainty remains high.
Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.
