Gate News reports that on March 19, Bitcoin’s price retraced all of this week’s gains, falling back to a key support zone due to unexpectedly high U.S. inflation data and Federal Reserve Chair Powell signaling a hawkish stance. Data shows Bitcoin dropped from a high of $74,700 to around $70,660, a decline of over 4.6%, currently hovering near $70,800, about 27% below its yearly high.
The macroeconomic environment has become the main driver of this correction. U.S. February PPI data significantly exceeded expectations, with core PPI rising to 3.9% and overall PPI reaching 3.4%, heightening market concerns about persistent inflation. In this context, Powell reiterated that the Federal Reserve will keep interest rates stable and emphasized that policy decisions will continue to depend on data, noting that rising energy prices are exerting ongoing pressure on inflation. Market expectations for a rate cut in the short term have cooled, putting pressure on risk assets.
The crypto market has also weakened, with total market capitalization falling to approximately $2.51 trillion. Ethereum and other major assets generally declined, and market sentiment has become more cautious. Meanwhile, leveraged positions faced concentrated liquidations; according to CoinGlass, total liquidations across the market reached $455 million, with longs accounting for over 80%, and Bitcoin-related liquidations alone exceeding $150 million.
From a technical perspective, the $70,000 level remains a key psychological and liquidity support. Some indicators are signaling a potential recovery, such as the SuperTrend indicator turning bullish and MACD showing upward momentum, suggesting short-term selling pressure is easing. If the price can stabilize above $72,540, it may test the resistance zone around $74,500.
However, if the price breaks below the $70,000 level, it could further decline toward $65,000 or even $60,000. The current market trend remains highly dependent on macro variables, especially inflation trajectories and interest rate expectations, which directly impact Bitcoin and the overall crypto asset prices.
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