Bitcoin Faces Potential Decrease Below $75K Amid Trade War Worries
Bitcoin faces significant risks if it cannot maintain the $75,000 support level due to escalating trade war concerns between the US and China. The price dropped over 6.5% to $78,197 recently. Analysts predict further declines could occur, with potential drops to $70,000, although institutional buying might stabilize it in the short term.
Bitcoin is facing the possibility of a further decline if it fails to hold the significant support level at $75,000. This concern comes amid rising anxieties regarding a potential trade war between the United States and China, which have been exacerbated by recent decisions from US President Donald Trump to impose import tariffs. As reported by Cointelegraph Markets Pro, Bitcoin’s price has dropped more than 6.5% within the last 24 hours, reaching a low of $78,197, a level not seen since November 10, 2024.
Analysts suggest that macroeconomic issues are driving Bitcoin’s recent downturn, with Ryan Lee, Chief Analyst at Bitget Research, noting that these concerns contributed to the cryptocurrency’s fall from the $80,000 support. Some experts express worries that Bitcoin could decline to $70,000, especially if it fails to maintain the $75,000 level. With its correlation to the global liquidity index, predictions indicate Bitcoin’s lowest selling price may fall nearer to $70,000 by the end of February after a peak around $110,000 in January.
Raoul Pal, founder and CEO of Global Macro Investor, warned in a November post that a correction to $70,000 was on the horizon after Bitcoin reached a local high above $110,000. He has been proven correct, as Bitcoin’s recent performance indicates that the cryptocurrency may struggle to maintain its previous high as investor sentiment weakens. Despite these concerns, some analysts believe that Bitcoin is unlikely to drop to $70,000 this week, thanks to sustained buying activity from significant market players like Michael Saylor.
Lee indicated that a drop below $75,000 could result in heightened volatility, as it would trigger approximately $900 million in leveraged long liquidations across exchanges. On the other hand, Bitcoin’s current decline may persist for another two weeks, based on historical price patterns, as suggested by crypto analyst Rekt Capital. According to him, Bitcoin is presently undergoing its first price discovery correction, implying a potential two weeks of downward movement reminiscent of the 2013 correction.
In summary, Bitcoin’s stability hinges on its ability to maintain the $75,000 support level amidst increasing macroeconomic concerns, particularly regarding US-China trade relations. Analysts warn of further declines to $70,000 if this support fails, alongside potential market volatility due to significant leverage liquidations. As the cryptocurrency navigates this challenging environment, observers remain cautious yet hopeful for recovery driven by institutional buying activity.
Original Source: www.tradingview.com
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