Bitcoin Price Drops 3.5% as Global Liquidity Expansion Could Impact BTC Rally

Following a promising start to the week, Bitcoin experienced a shift to negative returns as the price dropped by 3.5% to an intraday low of $84,120 on March 28. The price rejection took place at the intersection of the descending trendline and the upper boundary of the ascending channel pattern. Bitcoin is currently positioned below the 200-day exponential moving average on the daily chart, potentially leading to further downside if it closes below this key indicator. Analysts suggest that Bitcoin may correct to the $72,000-$75,000 range if liquidity conditions remain unchanged, with the Global M2 money supply potentially triggering a rally around May 1. The recent filling of the CME gap between $84,435 and $85,000 could result in a short-term bounce for Bitcoin, but there are warnings of a possible long-term correction leading to new lows in 2025. Traders are closely monitoring key support levels and market structures to determine the future direction of Bitcoin's price.