Bitcoin Price Dips Below $80K Amid Market Volatility and Tariff Concerns
Bitcoin’s price dipped below $80K following tariffs imposed on Canada by President Trump, sparking market volatility. The S&P 500 also declined, reflecting investor concerns. Analysts provided mixed signals regarding Bitcoin’s potential movements, with some warning of possible new lows despite existing support levels.
Bitcoin (BTC) experienced a notable decline, dipping below the $80,000 threshold after a brief 7% rebound following the opening of Wall Street on March 11. Market concerns were reignited by the announcement of further tariffs on Canada by U.S. President Donald Trump, which adversely impacted sentiments surrounding risk assets. Although BTC/USD had recently reached local highs of $82,154, it soon faced consolidation.
Market reactions were also reflected in the performance of the S&P 500, which decreased by 0.5% at the time of writing. This downturn follows a period where the index was previously up 5% since the commencement of Trump’s first term, highlighting a stark contrast as it shifted to a 7% decline since January 20th. The trading resource, The Kobeissi Letter, remarked on this fascinating trend amid ongoing volatility in the stock indices.
According to the trading firm QCP Capital, Trump’s apparent disregard for recession threats has adversely affected risk assets; however, they noted some positive indicators. “Despite the market turmoil, not all signals are bearish,” they indicated in their bulletin to Telegram channel subscribers, especially pointing out the decline of 10-year Treasury yields and the weakening of the U.S. dollar, which could benefit U.S. equities and cryptocurrencies.
With Bitcoin’s price positioned at a critical junction, analysts noted the absence of strong upward drivers. Analyzing Bitcoin’s price trajectory using Elliott Wave theory, it was highlighted that while there could be potential for a price surge, new long-term lows remain a possibility should resistance persist. Popular trader CrypNuevo observed a significant reaction at the 50-week simple moving average around $75,500, a pivotal support level that has been consistently upheld since March 2023.
The current market analysis indicates that Bitcoin’s recent price fluctuation is heavily influenced by external economic factors, notably the new tariffs imposed by the U.S. on Canada. Despite some potential positive developments, the overall sentiment remains bullish, with experts cautioning that Bitcoin may still reach new lows amidst continuous market volatility. Traders are advised to remain vigilant and conduct thorough research before making any investment decisions.
Original Source: cointelegraph.com
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