Recently, just like other risk assets, bitcoin has faced some challenges as markets grapple with the impact of U.S. tariffs and global uncertainty surrounding economic growth.
The big question on everyone’s mind: At what level will buyers start stepping back in for BTC/USD?
We’re keeping a close eye on some crucial levels on the daily chart, and here’s what we’re seeing:
Bitcoin and other risk assets have felt some pressure as the trade tensions between global powerhouses intensify. For bitcoin, the pressure might be even more profound as some traders are choosing to liquidate their crypto holdings to cover margin calls on riskier investments.
Interestingly, despite the anticipation of Federal Reserve rate cuts, the U.S. dollar remains a preferred safe haven. Investors might further flock to the dollar and U.S. bonds as a haven in these volatile times!
It’s important to remember that fundamental factors often drive market price movements and volatility. If you haven’t kept up with the current state of bitcoin and the U.S. dollar, now might be the perfect time to dive into the economic calendar and get up to date with the latest news!
Currently, BTC/USD is trading just below the $80,000 level after falling through the $90,000 support.
So, where could bitcoin find a strong base before it sees renewed and sustained interest?
We are closely monitoring the $70,000 – $74,000 range. This area aligns with the S1 Pivot Point at $74,094 and also the 61.8% Fibonacci retracement of bitcoin’s significant rally in late 2024. Significantly, this zone isn’t far from a trend line support that has held since 2023.
Should BTC/USD not recover from its current position around the 50% Fibonacci retracement, we’ll be on the lookout for bullish candlestick signals near $70,000. A technical rebound and buyers stepping in could present a compelling risk-reward scenario for those betting on a return to highs around $110,000.
However, if there’s another sharp downturn, breaking below $70,000 might pave the way for a substantial decline towards the $55,000 – $60,000 area.
In whichever direction you decide to trade, always prioritize sound risk management and keep an eye on major market-moving catalysts that could sway overall market sentiment!
