Bitcoin Set for Potential Drop to $73K – Here’s What May Happen Next

Bitcoin (BTC) is having difficulty maintaining its momentum as it encounters resistance near $84,000, with analysts cautioning about a potential decline to $73,000 before a larger upward movement.

Despite softer U.S. inflation data quickly pushing BTC above $84,000, overarching market risks—including Mt. Gox Bitcoin transfers and liquidity challenges—are impacting sentiment.

Crypto analyst EGRAG CRYPTO indicates that BTC could reach $73K by April 1st, referencing a bearish engulfing candle on the 3-day chart. According to his analysis, BTC may first test $80,500 before experiencing a deeper drop towards $73,000 within a crucial blue channel.

#BTC : $73K by April 1st Before the Final Leg Up!
I often take risks with time predictions , but I think it’s worth sharing, even if it might backfire!
Currently, #BTC is forming a potential Bearish Engulfing Candle on the 3-day timeframe. This could trigger further… pic.twitter.com/fAXT3Zi65c

— EGRAG CRYPTO (@egragcrypto) March 4, 2025

While expectations of a Federal Reserve interest rate cut support long-term bullish sentiment, Bitcoin remains vulnerable to short-term selling pressure. Should key support levels fail, BTC may experience additional downside before entering a recovery phase.

Traders are closely observing volume and institutional flows as Bitcoin approaches a critical price zone.

Soft Inflation Data Boosts Bitcoin – But Will It Last?

According to the Bureau of Labor Statistics, U.S. CPI increased by 0.2% in February, falling short of the anticipated 0.3%, indicating a slowdown from January’s 0.5% increase.

On a year-over-year basis, CPI stood at 2.8%, slightly below the expected 2.9%. Core CPI, which excludes food and energy prices, also eased to 0.2%, reinforcing the narrative that inflationary pressures are diminishing.

https://twitter.com/Schuldensuehner/standing/1899804633867952225

This information has sparked speculation that the Federal Reserve might cut rates sooner than anticipated to support economic growth.

Before the CPI announcement, markets had already factored in an 85% probability of a Fed rate cut by June, with a 40% chance for a May cut. The softer CPI report reinforced this expectation, leading to a positive reaction across risk assets.

Following the CPI release, Bitcoin briefly reached $84,100, while Nasdaq 100 futures surged by 1.5%. However, overall market sentiment remains fragile due to recent volatility in both cryptocurrencies and equities.

Mt. Gox Bitcoin Transfers Could Trigger Market Turmoil

In addition to macroeconomic factors, Mt. Gox’s Bitcoin transactions are raising new concerns. The defunct exchange, which has been in the process of repaying creditors since its 2014 hacking incident, transferred 11,500 BTC (valued at $905 million) to an unknown wallet.

This follows a similar transfer last week, igniting fears that further large-scale distributions could negatively impact Bitcoin’s value.

Mt. Gox has transferred 11,502 $BTC ($905M) to an unknown wallet. pic.twitter.com/ejsuteQBJF

— MoGambit (@MoGambitHQ) March 11, 2025

While these actions relate to creditor repayments, the market is closely observing the fate of Mt. Gox’s remaining 35,900 BTC (worth $2.8 billion). If significant amounts are liquidated, Bitcoin could face additional downward pressure.

Traders are monitoring whether creditors will sell or hold their BTC, which could influence price movements.

Bitcoin’s Next Move: Breakout or Breakdown?

Despite BTC’s recent surge above $84K, uncertainty lingers. The next major macro event is Thursday’s Producer Price Index (PPI) report, which will offer further insights into inflation trends.

• Resistance at $84,400: BTC requires a strong close above this level to confirm a bullish breakout.
• Support at $78,500: A decline below this point could accelerate a move towards $75,200 and potentially $73,000.
• Market Sentiment Remains Cautious: Traders are observing volume trends and institutional flows for confirmation of the trend direction.

For the moment, Bitcoin’s rally is under scrutiny, and the upcoming days will determine whether it can sustain momentum or face another downturn to $73K.

BTC Bull: Earn Bitcoin Rewards with the Hottest Crypto Presale

BTC Bull ($BTCBULL) is gaining popularity as a community-driven token that rewards holders with actual Bitcoin. Unlike conventional meme tokens, BTCBULL automatically airdrops BTC when Bitcoin reaches significant price milestones, providing a strong incentive for long-term investors.

Staking & Passive Income Opportunities

BTC Bull offers high-yield staking, enabling users to earn passive income with an impressive 154% APY. This staking system has already experienced strong community engagement, with millions of BTCBULL tokens staked.

• Current Presale Price: $0.002405 per BTCBULL
• Total Raised: $3.4M / $3.66M goal

With investor interest rising, this presale presents an opportunity to acquire BTCBULL at early-stage prices before the next price increase.

The post Bitcoin Faces ‘Final Leg Down’ to $73K – Here’s What Could Happen Next appeared first on Cryptonews.