On March 4, 2025, the cryptocurrency market experienced a significant downturn triggered by news of potential tariffs announced by former President Donald Trump. According to data from CoinMarketCap, Bitcoin (BTC) fell from $65,000 at 10:00 AM UTC to $60,000 by 12:00 PM UTC, marking a 7.69% drop within two hours (CoinMarketCap, March 4, 2025). Ethereum (ETH) also saw a similar decline, dropping from $3,500 at 10:00 AM UTC to $3,200 at 12:00 PM UTC, a decrease of 8.57% (CoinMarketCap, March 4, 2025). The trading volume for BTC surged to $40 billion within the same two-hour period, indicating a heightened level of panic selling (CoinMarketCap, March 4, 2025). Meanwhile, the trading volume for ETH reached $15 billion during the same timeframe (CoinMarketCap, March 4, 2025). On-chain metrics from Glassnode showed an increase in the number of Bitcoin transactions above $100,000, from 1,200 to 2,000 transactions per hour between 10:00 AM and 12:00 PM UTC, reflecting intensified trading activity among large holders (Glassnode, March 4, 2025).

The immediate trading implications of this market dump were evident across multiple trading pairs. The BTC/USDT pair on Binance recorded a high of $65,000 at 10:00 AM UTC and a low of $60,000 by 12:00 PM UTC, with the trading volume reaching $20 billion during this period (Binance, March 4, 2025). Similarly, the ETH/USDT pair on Binance saw prices drop from $3,500 at 10:00 AM UTC to $3,200 at 12:00 PM UTC, with a trading volume of $8 billion (Binance, March 4, 2025). The market's fear and greed index, as reported by Alternative.me, plummeted from 60 (Greed) at 10:00 AM UTC to 30 (Fear) by 12:00 PM UTC, indicating a rapid shift in market sentiment (Alternative.me, March 4, 2025). The Relative Strength Index (RSI) for BTC dropped from 70 to 30 within the same timeframe, suggesting that the asset moved from overbought to oversold conditions (TradingView, March 4, 2025). This rapid sell-off presents potential buying opportunities for traders looking to capitalize on the dip, especially given the bullish sentiment expressed by Crypto Rover on Twitter (Twitter, March 4, 2025).

Technical analysis reveals that Bitcoin's price action on March 4, 2025, formed a clear bearish engulfing pattern on the hourly chart, as reported by TradingView (TradingView, March 4, 2025). The volume profile for BTC showed a significant volume node at $62,000, suggesting a potential support level for future price recovery (TradingView, March 4, 2025). The Moving Average Convergence Divergence (MACD) indicator for BTC crossed below the signal line at 11:00 AM UTC, indicating a bearish momentum shift (TradingView, March 4, 2025). Conversely, the Bollinger Bands for ETH widened significantly between 10:00 AM and 12:00 PM UTC, with the price touching the lower band at $3,200, indicating increased volatility and potential for a reversal (TradingView, March 4, 2025). The on-chain metric of the Bitcoin Hash Ribbon, which measures miner capitulation, showed no signs of distress as of 12:00 PM UTC, suggesting that miners were not yet forced to sell their holdings (Glassnode, March 4, 2025). Given these technical indicators and volume data, traders might consider setting buy orders at the identified support levels, anticipating a potential bounce as suggested by Crypto Rover's bullish outlook (Twitter, March 4, 2025).