Bitcoin dropped to $92,910 as GDP figures were released, but sustained buy-side demand could provide support.
Bitcoin (BTC) price took an abrupt tumble as data showed the US gross domestic product (GDP) retracting by 0.3% in Q1, raising alarms among analysts anticipating a recession. Following the news, BTC price dropped to an intra-day low of $92,910, while the DOW and S&P 500 fell by 1% and 1.3% respectively.
While the GDP figures are shocking at face value, CNBC pointed out that the drop was primarily due to “a surge in imports ahead of President Donald Trump’s tariffs.” Imports are subtracted from GDP, suggesting that the pullback is more transitory than endemic.
After an initial 1% price drop, Bitcoin rebounded back to the $94,000 range as crypto and traditional markets digest today’s news headlines. Beyond the GDP figures, Bitcoin still has multiple positive factors that translate to a continued bid throughout its current price range.
Strong resistance at $95,000 remains, but BTC is holding a pattern of daily higher lows. The overhead resistance at $95,500 to $96,400 is also aligned with 61.8% Fibonacci retracement, which, in the view of technical analysis, tends to be an expected level of resistance.
Beyond today’s $41.47 million spike in Bitcoin long liquidations, spot volumes have driven the bulk of BTC bullish price action over the past two weeks, which is another positive.
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