The recent Bitcoin price drop has been a subject of concern as it fell below the critical $80,000 level on Sunday evening. This decline closely mirrors the sharp drops seen in U.S. stock index futures, triggered by growing fears over the consequences of a global trade war. China’s retaliatory tariffs in response to the U.S. administration’s new trade policies have heightened anxieties about a prolonged economic downturn, fueling fears of a global recession that could affect all markets, including Bitcoin.
This Bitcoin price drop is compounded by significant selling pressure from traders who are liquidating their positions. According to CoinGlass, Bitcoin has faced over $250 million in long liquidations in just 24 hours, marking the largest amount since early March. Bitcoin’s year-to-date performance shows a 15% decline, after an impressive rally last year fueled by optimism over regulatory developments.
Bitcoin Price Drop: Key Support Levels to Watch
As the Bitcoin price drop continues to unfold, it’s important to watch key levels that could act as support. A potential breakdown below last month’s low could send Bitcoin towards the $74,000 mark, which has served as an important technical support zone. This area aligns with a multi-month trendline and could offer some relief to investors as the market seeks stability.
Failure to hold this support level could result in a move towards the $65,000 mark, which is backed by both last year’s price action and technical patterns. Investors are also eyeing the $57,000 level, where a significant price swing low occurred in May. This region could serve as a critical support zone for Bitcoin should the selling pressure persist.
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Source: www.investopedia.com
