Bitcoin (BTC) found itself under renewed pressure on March 10, edging closer to its lowest levels in several months as selling momentum picked up with the opening of Wall Street trading.
BTC Price Slides Towards Four-Month Lows
Data from TradingView revealed that BTC/USD dropped approximately 4% on the day, touching $79,170 on Bitstamp.
Market weakness continued into the weekly close, with risk assets facing a broad sell-off as investors sought safer options. Stocks took a substantial hit at the open, with the S&P 500 shedding 2% and the Nasdaq Composite plunging by 3.5%.
According to financial analysis outlet The Kobeissi Letter, spending reductions by the Department of Government Efficiency (DOGE) played a role in the downturn.
“While most eyes are on the trade war, the impact of decreased government spending shouldn’t be overlooked,” the platform commented on X.
“Economic growth has been supported by government expenditures and job creation. The cutbacks from DOGE will have noticeable effects.”
Kobeissi also pointed out that the cryptocurrency market has shed $1 trillion in capitalization within just two months.
“The rally that followed the announcement of the U.S. Strategic Reserve has been completely erased,” it noted regarding BTC/USD’s movement.
Traders and analysts held mixed views on where Bitcoin might establish a solid support level.
Popular trader and analyst Rekt Capital suggested that traders should watch for potential bullish signals in Bitcoin’s relative strength index (RSI).
“A key indicator to monitor is whether Bitcoin forms lower lows in price while RSI creates higher lows—this would signal a bullish divergence,” he stated about daily chart movements.
He further highlighted that throughout the current bull cycle, Bitcoin has typically rebounded when the daily RSI dipped below 28.
“Historically, when this occurs, Bitcoin’s price either finds a bottom or is within 2% to 8% of one,” he explained. At the time of writing, Bitcoin’s daily RSI stood at 33.2.
Bybit Hack Continues to Weigh on Market Sentiment
Meanwhile, crypto trading firm QCP Capital attributed the broader market downturn to sell-offs linked to last month’s hack of the Bybit exchange.
“Today’s decline may be worsened by investors selling in anticipation of further hacker-driven liquidations. The hackers have opted to cash out rather than hold, especially after seeing their stolen assets drop 25% in value,” QCP Capital noted in a message to its Telegram community.
“As a result, demand for put options has surged in the past 24 hours, signaling increased concerns over additional selling pressure.”
QCP’s data suggested that market sentiment would likely improve only from Q3 onwards.
“Until the crypto sector finds a fresh catalyst, Bitcoin’s price will likely remain closely tied to equity markets,” the firm stated, referencing upcoming macroeconomic events in the U.S.
“Both markets are hovering near recent lows, and with tariff risks still in play, volatility could rise ahead of key U.S. economic data releases—CPI on Wednesday and PPI on Thursday.”
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