Bitcoin (BTC) faces a critical juncture as it struggles to maintain support levels amid growing macroeconomic uncertainty. The leading cryptocurrency is currently testing key technical levels after being rejected at descending resistance, with analysts eyeing $78,600 as a potential bearish target.
In a significant development that has rattled markets, Trump’s recent tariff announcements have triggered widespread selling pressure across crypto markets, adding another layer of complexity to Bitcoin’s technical outlook.
Market Analysis: Key Support and Resistance Levels
Bitcoin is currently trading at $83,500, down 25% from January’s all-time high. The asset faces several critical technical levels:
- Immediate resistance: $85,000 (4H 200MA)
- Key breakthrough level: $86,000 (4H EMA)
- Critical support: $81,000
- Bearish target: $78,600
Trading volume has shown concerning signs of decline, typically a precursor to major price movements. While retail investors show signs of panic selling, whale addresses have been accumulating, creating an interesting dynamic in the market.
SPONSORED
Trade Bitcoin with up to 100x leverage and maximize your profit potential
Macro Factors Influencing Bitcoin’s Price Action
The current market uncertainty is largely attributed to:
- Trump’s new tariff policies affecting global markets
- Declining trading volumes across major exchanges
- Technical rejection at descending resistance
- Growing institutional uncertainty
Expert Analysis and Price Targets
According to crypto analyst Carl Runefelt, the failure to break above descending resistance, combined with declining volume, suggests further downside potential. The $78,600 level remains a crucial target if current support fails to hold.
FAQ Section
Q: What is the next major support level for Bitcoin?
A: The immediate critical support lies at $81,000, with $78,600 being the next major support level if current levels fail.
Q: How are Trump’s tariffs affecting Bitcoin?
A: The tariffs have increased market uncertainty and risk-off sentiment, leading to increased selling pressure across crypto assets.
Q: What would signal a potential recovery?
A: A decisive break above $86,000 with increasing volume would signal potential recovery momentum.