Bitcoin Drops Below $75K as Strategy Faces Potential BTC Liquidation

Bitcoin has fallen from $80,200 to $76,900, a drop of over 9% following Trump's Liberation Day announcement. Prices briefly dipped to $74,250, resulting in a nearly 3% loss of the cryptocurrency's market cap within 24 hours.

On April 7, China sold $50 billion in US Treasuries in response to US tariffs. The US subsequently increased tariffs on Chinese imports by 104%. This situation has left financial markets, including crypto, unstable.

Indicators may remain unpredictable until clarity on tariffs is achieved or retail investors start selling aggressively. Currently, neither scenario has emerged.

Rumors of Institutional Selling

There are rumors that the largest corporate Bitcoin holder, Strategy, may need to liquidate some BTC holdings due to debt obligations if prices continue to decline. An SEC 8-K filing suggests potential forced sales.

Additionally, BlackRock’s iShares Bitcoin Trust (IBIT) sold 3,296 BTC on April 8, marking its third-largest outflow in a single day.

BTC Price Outlook

The BTC 4-hour price chart shows an RSI around 40, indicating an approach to oversold levels. A further drop could signal a bullish reversal. Key resistance is observed around $80,000.

Bitcoin touched the lower Bollinger Band today, often signaling a downside stretch that may lead to a short-term rebound. However, failing to reclaim the middle band at approximately $78,900 may extend the downtrend.

CryptoElites suggest Bitcoin has entered a bottom zone, indicating a possible upcoming spike as market leverage resets. Santiment also notes that macroeconomic tensions must ease for a rapid recovery in the crypto market, but warns of volatility until a tariff resolution is reached.