Bitcoin Dips Below $90K; Reserves Unchanged

Bitcoin’s Price Drops Below $90K: Understanding the US Crypto Reserve News

Bitcoin, the most famous digital currency, has had a big price drop recently. It fell below $90,000 after an important announcement about the US Crypto Reserve. Let’s find out why this happened and what it means for the world of cryptocurrencies.

The US Crypto Reserve Announcement

On March 3, 2025, Bitcoin’s price went down after the US Crypto Reserve was announced[2]. This made some traders sell their Bitcoins, causing the price to drop for a short time. This is called a “sell the news” reaction. It seems that traders didn’t believe the news would make the price go up for a long time, so they sold their Bitcoins to make a profit.

How Bitcoin’s Price Changed

Technical things that we can see on charts tell us a lot about how Bitcoin’s price has been changing. The Relative Strength Index (RSI) went down from 70 to 62, which means the price went from being too high (overbought) to a more normal level[2]. Also, the Moving Average Convergence Divergence (MACD) showed that the price might go down more[2]. The lines on the chart called Bollinger Bands got wider, which means the price was changing a lot[2]. More people were trading Bitcoin on big exchanges like Coinbase and Kraken, with 30% more trading happening, and a total of 50,000 Bitcoins being traded[2].

Important Price Levels to Watch

Traders are watching some important levels where the price might stop or turn around. If the price goes down to around $80,400, it might stop there because many people might want to buy Bitcoin at that price[1]. Another important level is around $74,000, where the price might stop and go up again[1]. If the price goes up above a certain level called the double top’s neckline, it might go up to around $98,500, which is a level where the price might stop and turn around again[1].

Other Things That Affect Bitcoin’s Price

Besides the US Crypto Reserve announcement, other things also affect Bitcoin’s price. Some people are worried about rules about trading in the US and a big hack that happened recently[3]. Also, people have been selling Bitcoin-backed ETFs, which means they’re taking their money out of them[3].

Dealing with Price Changes

Bitcoin’s price going down below $90,000 shows that the price of cryptocurrencies can change a lot. The US Crypto Reserve announcement made some people sell their Bitcoins, and other things also affect the price. To deal with these changes, it’s important to watch the important levels where the price might stop or turn around. Also, we should know that what happens in one part of the crypto world can affect other parts too[2]. As Bitcoin keeps changing, understanding these things will help us deal with its ups and downs.

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Sources:
– Investopedia
– Blockchain.News
– PYMNTS
– The Street