Bitcoin (BTC) has dropped by 1.6% in the past 24 hours and currently stands at $78,135 after a vicious weekend sell-off plunged most cryptocurrencies.
President Trump’s tariffs on key commercial allies spooked investors and plunged the price of BTC to around $74,300 at some point during today’s session.
The price has managed to recover during the American session but market sentiment is still heavily depressed as indicated by the Fear and Greed Index, which stands near record lows at 17.
Investors believe that tariffs could result in higher inflation in the near term and could plunge the U.S. economy into a recession as demand for multiple goods and services could suffer a setback amid rising living costs.
Higher inflation will deter the Federal Reserve from cutting its benchmark interest rate. Thus far, the U.S. central bank expected to lower rates twice this year but those plans may now change if the economy shows signs of weakness and inflation increases.
Bitcoin has been relatively resilient to the latest downturn as its 7-day losses stand at 5.5% compared to 15.5% and 10% that Ethereum (ETH) and XRP (XRP) have shed during this period respectively.
In the past 24 hours, $311 million worth of long positions in BTC have been flushed out of the system. Meanwhile, this morning’s recovery managed to put out $155 million in short positions as well, as market volatility has increased substantially.
Bitcoin (BTC) Could Drop by Another 12% if It Loses This Support
Looking at the daily chart, BTC broke below a key trend line support after it dropped below $80,000 during the weekend and bulls are now struggling to recapture that level.
If today’s session closes below that mark, it would raise the odds of BTC dropping below $70,000 in the next few days as its nearest support stands at $66,800. This implies a 12.3% downside risk.
Momentum indicators favor a bearish outlook as the Relative Strength Index (RSI) has moved below the signal line while the MACD’s histogram has displayed two dark red bars already, meaning that negative momentum is accelerating.
Meanwhile, if BTC closes above $76,000, this could be positive as it would result in a bullish double-bottom pattern.
However, the combination of a bearish macroeconomic outlook, pessimistic sentiment, and depressed momentum indicators favor a move to the low $70,000s, at least in the near term.
As the market goes through this latest correction, BTC Bull Token (BTCBULL) has emerged as one of the best crypto presales of the year as it provides passive income to BTC holders following a milestone-based reward mechanism.
BTC Bull Token (BTCBULL) Defies Market Downturn and Raises Nearly $5M
Bitcoin’s latest weakness has not deterred investors from pouring money into BTC Bull Token (BTCBULL) as the token has raised $4.9 million less than 2 months after its presale event started.
The compensation scheme offered by this meme coin is quite simple. Starting at a baseline price of $100K, for every $25,000 that BTC adds to its price, a portion of BTCBULL’s circulating supply will be burned to foster scarcity and raise its price.
Meanwhile, for every $50,000 increase above $100K, BTCBULL holders receive a direct airdrop of Bitcoin (BTC) based on the number of holders that each investor holds.
This meme coin has been ignored by most investors as mainstream media has focused primarily on big names lately. However, analysts agree that once BTCBULL hits the exchanges, it will attract significant attention from BTC investors who want to earn passive income as the price of the top crypto recovers.
To buy $BTCBULL, simply head to the BTC Bull Token website and connect your wallet. You can either swap ETH or USDT for this token or use a debit or credit card to complete your transaction.
