Bitcoin’s price has faced significant turbulence, dropping 11% over the weekend following former U.S. President Donald Trump’s executive order to use seized BTC for strategic reserves. While Bitcoin has since recovered slightly to $82,154, it remains down 4% in the past 24 hours, with macroeconomic pressures and technical indicators suggesting further downside risk.
Market Reaction to Trump’s Bitcoin Reserve Order
On March 7, Trump signed an executive order directing the government to use Bitcoin seized from criminal cases for a strategic reserve instead of purchasing it from the market. Many investors had anticipated government-backed Bitcoin purchases, which would have injected liquidity and demand into the market. The announcement disappointed these expectations, triggering an 11% price decline from $90,000 to $80,751 over the weekend.
Although the order does not rule out future Bitcoin acquisitions, any purchases would need to be “budget-neutral” and avoid additional taxpayer costs. Despite this, the immediate market reaction reflected a shift in sentiment, exacerbating the ongoing correction.
Macro Headwinds Add to Bitcoin’s Struggles
Beyond the disappointment surrounding the reserve announcement, Bitcoin faces mounting macroeconomic concerns. The intensifying trade war between the U.S. and China has led to retaliatory tariffs on American agricultural goods, increasing economic uncertainty. Meanwhile, Federal Reserve Chairman Jerome Powell confirmed on March 8 that the Fed would take a wait-and-see approach to interest rates, following a weak nonfarm payrolls report. While markets previously expected at least three rate cuts this year, the Fed’s cautious stance adds further uncertainty to risk assets, including Bitcoin.
Technical Indicators Signal Further Downside
From a technical perspective, veteran chart analyst Peter Brandt pointed to a double-top pattern in Bitcoin’s price, with peaks around $108,100. After breaking below key support near $95,321–$96,659, Bitcoin formed a bearish pennant and failed to reclaim the breakdown zone, signaling further downside pressure. The next critical support level is at $81,513. If Bitcoin falls below this level, additional declines are likely, with some analysts warning of a potential drop toward the $75,000 range.
According to Coinglass data, a breakdown below $81,513 could trigger approximately $1.3 billion in leveraged long liquidations, further amplifying selling pressure.
Potential Support Levels and Whale Accumulation
Crypto investor Arthur Hayes noted that Bitcoin is likely to retest $78,000, with $75,000 as the next key level if the former fails. He also highlighted significant open interest in Bitcoin options between $70,000–$75,000, suggesting that volatility could increase if prices enter this range.
Despite the recent selloff, some analysts remain optimistic about Bitcoin’s long-term outlook. Bitwise CIO Matt Hougan described the market’s reaction as “short-term disappointment” over the government’s approach to Bitcoin reserves. AI Czar David Sacks also emphasized that future Bitcoin acquisitions remain possible under “budget-neutral strategies.”
Additionally, whale wallets holding large amounts of Bitcoin have accumulated nearly 5,000 BTC since March 3, according to Santiment data. While this has not yet translated into a price rebound, continued accumulation by large holders could help stabilize the market in the coming weeks.
Outlook for Bitcoin
While Bitcoin remains under pressure due to macroeconomic uncertainty and bearish technical patterns, long-term institutional interest and potential government acquisitions could provide future support. However, in the near term, investors should brace for increased volatility, particularly if Bitcoin loses critical support levels in the $78,000–$81,000 range. With macro conditions still evolving, the coming weeks will be crucial in determining Bitcoin’s next major move.
