The ongoing tension surrounding tariffs is causing a ripple effect in the cryptocurrency market, with assets like Bitcoin and Ethereum facing potential declines. Investors are taking precautionary measures ahead of the anticipated announcement, leading to significant outflows from these assets.
Bitcoin, currently trading near $84,300, is facing resistance at the 200-day Exponential Moving Average (EMA) on the daily timeframe. If the price remains below this key level, there is a high possibility of a 6.5% decline, bringing it down to $77,400. The chart clearly indicates that the 200-day EMA is crucial in determining Bitcoin’s next move.
On the other hand, Ethereum is hovering near a critical level at $1,780. Should the price continue to slide and breach this level, a sharp 15% drop could be on the horizon, potentially pushing it down to $1,550. The daily chart highlights $1,780 as a key level that could dictate Ethereum’s future trajectory.
Traders are currently leaning towards bearish sentiments for both Bitcoin and Ethereum. Data from Coinglass reveals that traders are heavily over-leveraged, with short positions dominating the market. For Bitcoin, key levels are set at $83,320 and $85,960, with $811 million in long positions and $941 million in short positions. A similar trend is observed for Ethereum, with over-leveraged levels at $1,932 and $1,840, and $541 million in short positions compared to $185 million in long positions.
These indicators suggest that bears are in control, hinting at potential price drops for both cryptocurrencies. The upcoming tariff announcement adds further uncertainty to the market, prompting traders to adjust their positions accordingly.
As the cryptocurrency market braces for potential volatility, investors are advised to closely monitor key levels and market trends to make informed decisions. Stay tuned for updates on how the tariff tension continues to impact Bitcoin, Ethereum, and other digital assets.