Bitcoin’s price has dropped by 14.5% amid Trump’s tariffs on EU imports, falling to $82,250. Analysts suggest the price may find a bottom near $70,000, with strategic buying opportunities between $72,000 and $74,000. Market sentiment appears overly bearish despite signals of potential recovery. Several altcoins also show promise, with Solaxy attracting significant interest in its presale.

Bitcoin’s price has experienced a substantial decline of 14.5% from its weekly opening, dropping to $82,250. This downturn has been exacerbated by recent tariffs threatened by U.S. President Donald Trump on European Union imports, stirring negative market sentiment. The European Union has expressed its intent to retaliate against these tariffs, further heightening fears of a trade conflict. However, data indicates that institutional buyers are capitalizing on this market anxiety, suggesting that Bitcoin may soon reach a price floor.

The Global M2 money supply remains a critical indicator for anticipating Bitcoin’s price movement. This metric demonstrated its predictive capabilities when it began contracting in September 2024, foreshadowing the current Bitcoin correction. Well-regarded market analyst Joe Consorti suggests that Bitcoin could find its bottom around the $70,000 mark, supported by its correlation with M2 data. Furthermore, additional analysts, including Nebraskangooner and Cheds Trading, anticipate strategic buying opportunities in the $72,000 to $74,000 range.

The current macroeconomic environment poses significant challenges for Bitcoin’s bull market. Trump’s proposed tariffs are likely to intensify concerns surrounding stagflation amidst ongoing inflation and stagnant growth rates. Nevertheless, there are signs that market pessimism may be excessive. Macro expert Julian Bittel predicts improved financial conditions by the second quarter of 2025, while the Crypto Fear and Greed Index has fallen to its lowest level since June 2022, implying a potential overreaction.

Furthermore, Bitcoin’s Relative Strength Index (RSI-14) indicates that it is approaching oversold territory. Historical data shows that Bitcoin has previously rebounded significantly from similar conditions. Investors may find it prudent to await entry opportunities around $72,000 to $74,000; however, a recovery above $91,500 could signal a strong market comeback, potentially propelling Bitcoin to new all-time highs.

Several altcoins also exhibit signs of potential breakout. Litecoin ($LTC) is demonstrating strength in the current market despite overarching declines, with a critical resistance point at $143. Additionally, Trump’s World Liberty Financial is reportedly increasing its Ethereum holdings, which remains a favorable option among experts despite its recent lackluster performance. Investors should also monitor XRP, which may become attractive if it surpasses the $2 resistance threshold.

The presale token Solaxy (SOLX) is witnessing growing interest, having raised nearly $24 million before its ICO concludes. Positioned as the first prominent Solana Layer-2 coin, it is perceived as undervalued compared to Ethereum’s layer-2 solutions. Analysts have speculated that Solaxy could potentially yield significant returns, positioning it as a frontrunner among newer cryptocurrencies.

In conclusion, while the Bitcoin market faces challenges due to geopolitical tensions and macroeconomic uncertainties, there are numerous indicators that suggest a potential recovery is imminent. Strategic entry points around $72,000 to $74,000 may provide substantial opportunities for investors. Furthermore, attention should be paid to promising altcoins and presale projects that are currently gaining traction in the marketplace.

Original Source: en.cryptonomist.ch

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