Bearish view
Sell the BTC/USD pair and set a take-profit at 58,000.
Add a stop-loss at 68,000.
Timeline:1-2 days.
Bullish view
Buy the BTC/USD pair and set a take-profit at 68,000.
Add a stop-loss at 58,000.
Bitcoin price continued its strong downward trend, reaching its lowest level since February 6 as market risks rose. The BTC/USD pair dropped to 64,000, much lower than the all-time high of 126,200.
Bitcoin Price Slumps as Risk-Off Sentiment Prevails
The BTC/USD pair made a bearish breakdown as a risk-off sentiment prevailed in the market. For example, the US stock market continued falling, with the Dow Jones Index falling by over 800 points and the Nasdaq 100 Index falling by nearly 300 points.
US stocks dropped sharply as investors reflected on the Supreme Court decision to end Donald Trump's tariffs. While ending these tariffs was a positive thing for stocks, Trump’s response led to confusion in the market. He initially responded by implementing a 10% universal tariff on Friday and then hiked it to 15%.
The BTC/USD pair continued falling as ETF outflows accelerated. Data shows that spot these funds shed over $1 billion this month, bringing the four-month outflow to over $7 billion.
Bitcoin price also retreated as the futures open interest continued falling, reaching a low of $90 billion from last year's high of over $95 billion. Falling open interest is a sign that investors are no longer borrowing to buy Bitcoin as they did in the past few months.
Bitcoin is also falling amid growing risks that Donald Trump will attack Iran in the coming days or weeks. The US has already asked many Americans in Iran and Lebanon to leave the country as it continues to accumulate a large military presence in the region. A war in Iran would lead to lower Bitcoin prices because its role as a safe haven has been debunked.
BTC/USD Technical Analysis
The daily timeframe chart shows that Bitcoin price continued its strong downward trend this week, reaching its lowest level since earlier this month. It has remained below the Supertrend indicator.
Bitcoin price dropped below all moving averages, while the Percentage Price Oscillator (PPO) has remained below the zero line. Also, the pair has formed a bearish flag pattern, a common continuation sign in technical analysis.
Therefore, the pair will likely continue falling in the near term, with the potential moving to the key support level of 58,000. This view will be confirmed if it moves below the year-to-date low of 60,200.