The recent turmoil in the US markets has caused major stocks to plummet and the crypto markets to experience over $500 million in liquidation. This bearish trend was triggered by Trump’s tariffs affecting global markets, leading to a spike in trading volume and a decrease in market cap to around $2.63 trillion.
The question on everyone’s mind is whether Bitcoin will rise to $250K or if macro headwinds will continue to dominate the market. With the announcement of tariffs, uncertainty has gripped the markets, causing gold prices to soar while the US dollar weakens. The DXY Index has seen a significant 2.83% decline but is still holding above the crucial support level at 100.
The weakening of the DXY Index could be a bullish signal for Bitcoin and the crypto markets, as investors may view them as a safe haven asset compared to the USD. Additionally, the Bitcoin hash rate has reached a new all-time high, indicating increased mining activity and positive market sentiment.
Despite these bullish signs, there are concerns that Bitcoin may break crucial support levels and face a potential death cross. The selling pressure has been mounting, with the $81,000 support level likely to be tested soon. An extended pullback to $80,000 could confirm a bearish pattern, potentially driving the price even lower.
Looking ahead, the 50/200-day moving averages are on track for a bearish crossover, indicating a mix of bullish and bearish pressure on the BTC price. If sellers continue to dominate, Bitcoin could establish new lows for the year before embarking on a strong recovery phase. This could present an attractive buying opportunity below $79,000, with the potential to reclaim lost resistance levels above $85,000.
Overall, the market remains volatile, with both bullish and bearish signals pointing towards potential opportunities for investors in the coming days. It’s essential to stay informed and vigilant in navigating these turbulent times in the financial markets.