Bitcoin Price Decline Amid Global Market Tensions

By: Isha Das

Bitcoin's price has faced significant volatility recently as global market dynamics continue to shift. A new round of tariffs introduced by the United States administration under President Trump has caused widespread disturbances in global financial markets. These tariffs are seen by some analysts as part of Trump's broader economic strategy, reminiscent of his 'Art of the Deal' approach. This environment has exacerbated existing pressures on Bitcoin, which has seen its price fluctuate dramatically.

The digital currency, which had managed to hold above the $83,500 mark, has since entered a consolidation phase, falling below critical support levels including the $83,000 and $82,000 benchmarks. Following these downturns, Bitcoin plummeted even further, breaking through significant support zones such as $80,000 to establish a low at $77,057. Although the cryptocurrency did attempt a minor recovery, rising towards $78,800 and climbing beyond the 23.6% Fibonacci retracement level of its recent fall, it continues to struggle amidst turbulent market conditions.

Currently trading below $81,500 and its 100 hourly simple moving average, Bitcoin faces immediate resistance around the $80,000 mark, with key resistance poised at $80,500 and subsequently $81,500. While the potential for further gains exists, should Bitcoin manage to surpass these levels, it remains at risk of another downturn. Analysts are eyeing $77,500 as the first major support level on the downside, with further losses potentially driving prices down to $75,000 or even $74,200 if current trends persist.

This volatile climate highlights the fragile state of cryptocurrency markets under broader economic influences, with technical indicators such as the hourly MACD and RSI suggesting bearish sentiments. Bitcoin's trajectory will likely depend on overcoming the current resistance levels or risk entering a deeper correction phase.