Bitcoin Faces Key $75K Support As Price Risks Rise Amid Macro Issues
Bitcoin’s price has fallen below $78,197, nearing the critical $75,000 support level, amid concerns of a trade war between the US and China. Analysts suggest a potential decline towards $70,000 may occur if this support is lost, with institutional buying providing some stability. Historical patterns indicate a continued correction may last for another two weeks.
Bitcoin is currently facing significant risks as it hovers around the crucial support level of $75,000. A recent drop of over 6.5% has seen its price fall to $78,197, raising concerns amid escalating fears of a trade war between the United States and China, triggered by import tariffs imposed by President Donald Trump. Analysts warn that if Bitcoin fails to maintain this support, it may further decline, with possible targets nearing $70,000.
Ryan Lee, chief analyst at Bitget Research, emphasizes that the recent decline below $80,000 reflects investor anxiety regarding Trump’s tariffs and general market instability. He highlights that this situation indicates a likely correction in Bitcoin’s price within the $76,000 to $78,000 range, with $75,000 being a historically significant support level. There are fears within the analyst community that additional pressure could see Bitcoin revisiting the $70,000 mark.
There are correlations observed with the global liquidity index, suggesting that Bitcoin’s lowest selling price may dip below $70,000 by late February, contrasting with its peak of approximately $110,000 experienced in January. Raoul Pal, founder and CEO of Global Macro Investor, noted a potential correction, anticipating a local top for Bitcoin before the current downturn commenced.
Despite the prevailing negative investor sentiment, some analysts believe Bitcoin will unlikely plummet to $70,000 within the week, citing substantial buying activity from institutional investors, which reduces the chances of significant declines. Lee suggests that although a drop to $70,000 remains possible, it is less likely without new negative catalysts that could further destabilize the market. Maintaining the $75,000 support level is critical to avoid triggering major long liquidations, amounting to almost $900 million, across all exchanges.
Historical patterns analyzed by crypto analysts, including Rekt Capital, suggest Bitcoin may experience a correction lasting an additional two weeks. Notably, Rekt Capital pointed out that this current decline has been shallower relative to historical benchmarks, indicating a potential resemblance to a similar downward trend observed in 2013. Should this parallel hold, Bitcoin might experience ongoing pressure in the near term, resulting in continued volatility.
In summary, Bitcoin’s price is under significant scrutiny as it approaches the vital $75,000 support level amidst rising macroeconomic concerns. Analysts are monitoring potential downward corrections towards $70,000, especially if the current trading environment worsens. Institutional investor activity appears to provide some stability; however, the threat of considerable liquidations looms if the price fails to hold. Historical trends suggest that Bitcoin’s current correction may extend over the next two weeks.
Original Source: cointelegraph.com
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