Bitcoin experienced a significant price drop below the $75,000 mark due to market volatility caused by the ongoing tariff war. This marked the first time since November that Bitcoin traded at this level. Despite recovering from the dip, the flagship cryptocurrency faces the risk of more short-term volatility if it fails to reclaim key support levels soon.
In recent weeks, Bitcoin has been trading below its Bull Market Support Band, indicating a struggle to regain momentum. Market analysts have noted that the current correction is very close to equaling the retracement depth of the Post-Halving pullback, which saw Bitcoin drop 31% from its January all-time high.
Analysts suggest that Bitcoin could potentially drop further into the $70,000 support zone before reaching a bottom. Historical data shows that when Bitcoin’s Daily RSI crashes into sub-28 levels, the price bottom typically falls 0.32% to 8.44% lower than the initial RSI bottom.
Rekt Capital outlined key levels that Bitcoin needs to reclaim after closing below the $80,650 support. The cryptocurrency must recover last week’s close level and hold Sunday’s daily close level of $78,500 to challenge the 2025 Weekly Downtrend. Failure to do so could result in a bearish retest, potentially targeting the price range between $69,000 and $72,000.
As of the latest update, Bitcoin is trading at $79,200, showing a 1% increase in the daily timeframe. Analysts emphasize the importance of reclaiming key support levels to avoid further downside continuation and potential bearish scenarios.
Overall, Bitcoin’s price action is closely monitored by market participants, with a focus on reclaiming key levels to avoid additional volatility and potential price drops in the short term. Traders and investors are advised to keep a close eye on market developments and key support levels to make informed decisions.