Bitcoin’s price action has taken a dramatic turn amid escalating trade tensions, with recent tariff-driven volatility pushing BTC below critical support levels. The flagship cryptocurrency is now testing key technical levels that could determine its short-term trajectory.
Market Analysis: Critical Support Levels Under Pressure
Bitcoin has experienced its most significant correction since November, dropping below $75,000 and registering a 9.1% decline. The correction comes as global markets reel from escalating trade tensions, with BTC showing increased correlation to traditional risk assets.
Technical Indicators Signal Further Downside
According to prominent analyst Rekt Capital, Bitcoin’s current retracement is approaching the depth of previous post-halving corrections, sitting at 31% from January’s all-time high of $108,786. Historical patterns suggest the potential for further downside, with key support at $69,000-$70,000.
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Key Price Levels to Watch
Critical support levels include:
- Primary support: $78,500
- Secondary support: $74,500
- Final support zone: $69,000-$70,000
Market Outlook and Trading Implications
For Bitcoin to establish a meaningful recovery, it must reclaim the $78,500 level and hold it as support. A failure to do so could trigger additional selling pressure, potentially leading to a test of lower support levels.
FAQ Section
What’s causing Bitcoin’s current price correction?
The correction is primarily driven by global market uncertainty surrounding trade tariffs and their potential economic impact.
What are the key support levels to watch?
The critical support levels are $78,500, $74,500, and the $69,000-$70,000 range.
When might Bitcoin recover?
Technical analysis suggests that Bitcoin needs to reclaim and hold above $78,500 to initiate a meaningful recovery phase.