TLDR

Table of Contents

Bitcoin price is recovering after falling below $80,000, with a recent low of $74,409
BTC is facing resistance near the $80,500 and $81,500 levels
Bitcoin briefly crossed $80,000 on Tuesday, rising 3.6% to $79,673.5
The recovery comes despite concerns over President Trump’s trade tariffs
Bitcoin recently formed a “death cross” technical pattern, which could signal more near-term weakness

Bitcoin is showing signs of recovery after a sharp decline that took the world’s largest cryptocurrency below the $80,000 mark. The digital asset bounced from a low of $74,409 and has been climbing back toward the $80,000 level, though several technical barriers remain in its path.

BTC started a fresh decline that pushed it below several key support levels including $82,000, $81,200, and eventually $80,000, placing it firmly in bearish territory. The drop continued until Bitcoin reached a low point at $74,409 before buyers stepped in to start a recovery wave.

Currently, Bitcoin is trading below $81,200 and the 100-hour Simple Moving Average. The price has managed to climb above the 50% Fibonacci retracement level of the recent decline from the $83,680 swing high to the $74,409 low.

Technical Barriers Ahead

On the upside, Bitcoin faces immediate resistance near the $80,400 level. There is also a connecting bearish trend line forming with resistance at this same level on the hourly chart of the BTC/USD pair.

The first key resistance is near the $81,500 level, which corresponds to the 76.4% Fibonacci retracement level of the recent decline. If Bitcoin can clear this hurdle, the next resistance could be at $82,500.

A successful close above the $82,500 resistance might send the price higher toward the $83,500 level. Further gains could potentially push Bitcoin toward the $85,000 mark.

However, if Bitcoin fails to rise above the $80,500 resistance zone, it could start another decline. Immediate support lies near the $79,500 level, with major support at $78,000.

Trump Tariffs Weighing on Markets

The recovery in Bitcoin comes as traders bought the dip, with the cryptocurrency rising 3.6% to $79,673.5 on Tuesday. It briefly crossed the $80,000 mark earlier in the day.

The gains in Bitcoin tracked a broader rebound in financial markets. Wall Street indexes recouped most of their Monday losses, while most Asian markets advanced. U.S. stock index futures were also positive in Asian trade.

Despite the recovery, Bitcoin was still nursing a 4.2% drop over the past two days. It briefly slumped to a five-month low on Monday as risk appetite was damaged by President Trump’s tariff announcements.

The U.S. President unveiled reciprocal tariffs on several major economies last week, with the duties being larger than markets had expected. Trump doubled down on his tariffs over the weekend, even threatening China with steeper duties if Beijing did not withdraw its retaliatory tariffs on the U.S.

These tariffs are set to take effect from Wednesday, with Trump also threatening duties on pharmaceutical and semiconductor imports.

Speculative, risk-driven assets like Bitcoin experienced steep losses due to diminished risk appetite, with few factors appearing that could help lift market sentiment.

Technical Warning Signs

Adding to the concerns for Bitcoin holders, the cryptocurrency formed a “death cross” this week – a key technical indicator that could signal more near-term weakness.

A death cross occurs when an asset’s short-term moving average falls below its longer-term moving averages. In Bitcoin’s case, its 50-day moving average dropped below its 200-day moving average, confirming the bearish pattern.

This technical development could herald more weakness for Bitcoin, especially with the lack of directly positive cues for crypto markets.

Several long-term holders of Bitcoin were also seen moving coins onto exchanges in recent weeks, potentially indicating plans to sell their holdings.

The hourly MACD (Moving Average Convergence Divergence) is gaining pace in the bullish zone, while the RSI (Relative Strength Index) for BTC/USD is now above the 50 level, suggesting some positive momentum in the very short term.

As Bitcoin navigates these choppy waters, traders are watching key support levels at $79,500, $78,000, $76,500, and the critical $74,400 mark that was tested during the recent low.

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