Analyst Identifies Bitcoin’s ‘Ideal Buy Zone’ Amid Market Volatility
Bitcoin has plummeted to $81,332 after Trump’s tariff announcement but is viewed by analysts as entering an ‘ideal buy zone.’ The price movement suggests a possible rebound, although caution is advised due to persisting bearish trends. Key resistance and support levels have been identified for traders’ focus as Bitcoin recovers to $83,695.
In the wake of a significant market shock instigated by Donald Trump’s tariff announcement on imports from 185 countries, Bitcoin has experienced a drop to a low of $81,332. This decline has affected both cryptocurrency and traditional markets. Notably, an analyst from TradingView argues that Bitcoin has now entered what is deemed the “ideal buy zone,” presenting a strategic entry point for potential investors.
The analyst indicates that Bitcoin’s recent price movements align with a bullish structure on the hourly chart, marking it as a favorable target zone despite the steepness of the decline. This entry scenario unfolds after Bitcoin slipped below $84,700 on April 2, following a previous peak of $87,100. This descent under a key downward trendline provides an opportunity for investors looking to capitalize on price rebounds from the support level at $81,000.
However, caution is warranted as Bitcoin’s daily closing prices remain below a significant descending trend line, maintaining the broader downtrend visible on daily charts. This lack of a successful breakout could indicate additional risks, suggesting that Bitcoin may continue to face challenges in the immediate future.
Looking ahead, the analyst has outlined critical levels for traders to keep an eye on. A potential rebound may encounter resistance between $84,576 and $86,000, which could dictate Bitcoin’s ability to reach higher price levels. Conversely, should Bitcoin fail to maintain its position above $81,000, attention will shift to lower support areas between $78,363 and $79,500—where holding could prevent further price drops.
As of the current moment, Bitcoin trades at approximately $83,695, demonstrating a recovery of about 2.9% from its lowest point earlier in the day. Following Trump’s announcement, the market appears to be stabilizing, leading to renewed inflows into Bitcoin, making it essential for traders to monitor its movement toward the identified resistance zone.
In summary, following recent market turbulence due to political developments, an analyst has identified a potential buying opportunity for Bitcoin as it enters a designated ‘ideal buy zone.’ However, the overarching bearish trend remains a pivotal concern. Traders should monitor crucial resistance and support levels to navigate potential shifts in Bitcoin’s price trajectory.
Original Source: bitcoinist.com
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