Like other risk assets, bitcoin has taken a hit in recent days as markets react to U.S. tariffs and global growth uncertainty.
How low BTC/USD can go before buyers step back in?
We’re watching some key levels on the daily chart!
Bitcoin (BTC/USD) Daily Chart by TradingView
Risk assets like cryptocurrencies have been bleeding pips as the trade war between major economies heats up. Bitcoin may even feel more pressure as some traders liquidate their crypto holdings to cover margin calls on other risk positions.
Meanwhile, the U.S. dollar remains a go-to safe haven despite pressure from Fed rate cut expectations. The Greenback could see even more demand as investors flock to U.S. bonds in a flight to safety!
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
BTC/USD is now trading just below the $80,000 mark after busting through the $90,000 support.
How low can bitcoin go before we see more sustained demand?
We are watching the $70,000 – $74,000 zone, which lines up with the S1 Pivot Point at $74,094 and the 61.8% Fibonacci retracement of bitcoin’s late 2024 rally. More importantly, this area is not far from a trend line support that has been in place since 2023.
If BTC/USD fails to bounce from its current levels near the 50% Fib retracement, we will be looking for bullish candlestick signals closer to $70,000. A technical bounce and sustained buying from this zone could offer a solid risk reward setup for those eyeing a return to all time highs near $110,000.
However, if BTC/USD sees another sharp selloff, a break below $70,000 could open the door for a deeper drop toward the $55,000 – $60,000 region.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!