After several days of showing resilience, Bitcoin (BTC) has broken below several support levels to below $79,000. The number one coin by market capitalization previously stayed strong above $83,000, but has since been hit by the wave prevailing across the crypto and stock market hence the drop.
Notably, the heating up Trade War has caused a lot of tension across the market. While bulls held strong, the market seems to be shifting in the favor of bears as macro factors take a hit on the market. So, will the price of Bitcoin continue to drop or rebound?
BTC’s Breach of Several Support Levels to Below $79K
The recent price performance of Bitcoin is depicting a worrying scenario across the crypto market. As posted on X by WatcherGuru, the price of Bitcoin has dropped from the $83,000 price level recorded earlier today to below $79,000.
According to data on Coinmarketcap as of the time of this writing, BTC was trading at $78,956.06. This drop depicts a 4.88% drop on the day with more drop more likely as panic-selling kicks in.
Looking at the surge in trading volume, it is clear that sellers are in control in the current market. A surge in trading volume as the price drops indicates increasing selling pressure. Currently, BTC’s trading volume has surged by 79.06% and is currently at $25.67 billion.
$694M Liquidated From the Crypto Market Over the Last 24 Hours
Following the recent dip in major cryptocurrencies, several crypto positions have been liquidated from the crypto market. According to liquidation data by Coinglass, a total of $694.85 million worth of positions have been liquidated over the last 24 hours.
These liquidations have seen approximately 237,377 traders lose their positions as the bloodbath hit the market. As per the data, the largest single liquidation happened on Bitfinex where a trader lost $16.38 million-worth tBTCF0:USTF0 position.
Additionally, amongst all coins Bitcoin traders have faced the largest liquidation with a total of $223.39 million wiped out over the last 24 hours. The drop in ETH below $1,600 has also resulted in $208.89 million liquidation of ETH positions.
Other coins besides top altcoins followed in with a total of $71.77 million liquidated from the market. Solana, Ripple and Dogecoin also recorded $33.8M, $18.37M, $14.71M liquidations over the last 24 hours, respectively.
What’s Causing the Recent Market Crash?
After China and Canada, the European Union (EU) has also decided to put some pressure on the U.S with additional tariffs. As shared on X by political analyst ‘War Intel,’ the EU has finally agreed to impose retaliatory tariffs on the United States. These additional tariffs will be imposed on ‘$28 billion worth of US imports’ and will be issued on all items; from ‘dental floss to diamonds,’ as a Reuters report.
With these goods now set to become more expensive for consumers, it teases a potential for global economies getting into recession. Furthermore, the EU (a 27-nation bloc) has made the move as retaliation to the 25% tariffs on steel and aluminium and cars imports as imposed by Donald Trump. The bloc also faces “reciprocal” tariffs of 20% for almost all other goods starting from Wednesday.
If the looming global Trade War continues to heat up, more bloodbath might be experienced across Bitcoin and altcoins as well as the stock market. In fact, altcoins have dropped by over 10% due to the heat of the tariff war and could continue to face more turmoil.
Bitcoin to Drop to $73,000; Analyst Predicts
Following the dip of Bitcoin below $80,000, top analysts have predicted that the price could drop further. Top analyst pseudonymously known as ‘Grey BTC’ has predicted that BTC could drop to $73,000 level.
“$73,000 looks likely at this point,” the analyst’s reply to Watcher Guru’s post read. With continued macroeconomic factors Bitcoin stands at a great risk of further drop. Investors should thus keep an eye on Bitcoin price movement to determine whether it will rebound or drop even more.
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