The march mayhem has begun with Bitcoin sliding down towards $80,000 over the weekend. With market sentiments turning bearish as Trump proceeds with his aggressive tariff stance, market experts expect a further downslide in the coming days.
A panic induced from tariff politics has triggered sell offs for Bitcoin and other cryptocurrencies.
Bitcoin fell to $80,000 post 7:00 p.m. ET, a 7% decline in the previous 24 hours. At the time of writing, the largest cryptocurrency in the world was trading at $81,641, indicating a very small rebound from that low point.
Arthur Hayes, co-founder of BitMEX, has warned that Bitcoin might drop below $78,000 again. He brought up the fact that a lot of Bitcoin options are priced between $70,000 and $75,000, which could lead to even more volatility if prices fall into that range.
In a Sunday sell off, BTC price dropped $6000 and is looking to test its low of 2025. In this bearish framework, the 4-hour chart reveals a larger consolidation.
Near $86,000, Bitcoin encounters resistance, while $81,000 serves as support. Big red candles represent long-term selling, while small green spikes in volume indicate buying attempts that didn’t last.
A low trend strength indicated by an average directional index (ADX) of 25 indicates that volatility is high and the bearish bias is still present.
If bitcoin does not break higher, traders may seek short entries near resistance. On the other hand, if the $81,000-$82,000 zone sees significant buy volume, potential long positions may emerge.
Also Read: US Could Hold 25% of Bitcoin by 2035, Says Michael Saylor
