The US markets are currently undergoing a significant pullback, with major stocks plummeting by a large margin. At the same time, the crypto markets are heating up, with over $500 million in liquidations recorded. The bearish trend in the markets can be attributed to Trump’s tariffs impacting global markets, leading to a spike in trading volume and increased selling pressure. As a result, the market cap has dropped to approximately $2.63 trillion.
Will Bitcoin Reach $250K, or Will Macro Headwinds Prevail?
Following the announcement of tariffs, the markets have been facing intense selling pressure due to rising uncertainty. While gold prices continue to soar, the US dollar’s strength has been steadily declining. The DXY Index has experienced a significant 2.83% pullback but remains above the crucial support level of 100.
The DXY Index appears to be in a precarious position, with bearish candles not seen in recent history. This could signal a bullish trend for Bitcoin and the crypto markets, as investors may view them as a safe haven compared to the USD. Additionally, the BTC hash rate has surged to a new all-time high of around 975.96M, indicating increased mining activity and reflecting positive market sentiment.
The increase in the BTC hash rate indicates a more secure network, which could boost investor confidence. Despite these positive signals, there are concerns that the BTC price may break crucial support levels and potentially face a death cross in the near future.
Where is Bitcoin’s Price Headed Next?
It is evident that selling pressure has been mounting on the BTC price rally in recent days. The $81,000 support level is expected to be tested soon, and a further pullback to $80,000 could confirm a bearish pattern, potentially pushing the price lower.
The 50/200-day moving averages are on track for a bearish crossover, indicating a balance between bullish and bearish pressure on the price. If sellers continue to dominate, Bitcoin’s price could establish new lows for the year, potentially leading to a strong recovery phase and reclaiming resistance levels above $85,000. This presents a potential buying opportunity for Bitcoin in the coming days, possibly below $79,000.
