Bitcoin dropped below the closely watched $80,000 level on Sunday evening, tracking U.S. stock index futures sharply lower amid intensifying worries about the impact of tariffs.
The 50-day MA has crossed below the 200-day MA to form an ominous death cross, a chart pattern that warns of further selling.
Investors should watch key support levels near $74,000, $65,000, and $57,000, while also monitoring a major overhead area near $87,000.
Bitcoin (BTCUSD) dropped below the closely watched $80,000 level on Sunday evening, tracking U.S. stock index futures sharply lower amid intensifying worries about the impact of tariffs.
The pioneer cryptocurrency plunged 5% to around $79,000 as market participants braced for further market volatility after China on Friday responded to the Trump administration’s recently announced sweeping tariffs with retaliatory duties, heightening concerns of a drawn-out trade war that could trigger a worldwide recession.
Bitcoin also continues to face selling pressure from liquidations, an event where falling prices force traders to sell their bullish bets on the cryptocurrency at a loss. According to crypto analytics site CoinGlass, bitcoin has suffered $250 million in long liquidations over the past 24 hours, the highest amount since March 7. Bitcoin has tumbled 15% year to date after more than doubling last year on expectations of regulatory tailwinds.
Below, we take a closer look at bitcoin’s chart and apply technical analysis to identify key price levels worth watching out for amid a tariff-driven global market selling rout.
After falling below the 200-day moving average (MA) last month, bitcoin’s price consolidated within a rising wedge before breaking down below the bearish pattern in late March, signaling a continuation move lower.
Indeed, the cryptocurrency’s price has continued its downtrend, with declines accelerating on Sunday evening after a brief period of sideways drift. It’s also worth pointing out that the 50-day MA has crossed below the 200-day MA to form an ominous death cross, a chart pattern that warns of further selling.
Let’s identify three key support levels on bitcoin’s chart that investors may be watching and also locate a major overhead area to eye during potential recovery efforts in the cryptocurrency’s price.
A breakdown below last month’s low could see a move to around $74,000. This area on bitcoin’s chart may provide support near a multi-month trendline that connects last year’s prominent March peak and late-October high that preceded November’s election-fueled breakout.
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