Bitcoin's Bottom Unconfirmed Despite US Tariff Pause, Swissblock Warns

Swissblock, a leading crypto analytics firm, has issued a warning that Bitcoin (BTC) may not have reached its market bottom despite the recent 90-day tariff pause implemented by the US. The firm, which utilizes a range of indicators including price data, on-chain data, and other trading metrics, has stated that the current upward momentum of Bitcoin does not yet indicate a convincing breakout. Swissblock emphasized that while the tariff pause has helped to ease tensions, the market is still not out of the woods.

Swissblock's Bitcoin Risk Signal, which evaluates the likelihood of a major drawdown, has not yet indicated that a market bottom has been reached. The firm noted that market risk remains elevated and has not entered a low-risk regime. "Market risk must ease for a true bottom. It’s under control but still elevated, not in a low-risk regime yet. We need to see a clear decline in risk," Swissblock stated on the social media platform X.

According to Swissblock, Bitcoin is currently in a downtrend, which is a normal phase in bottoming cycles. The firm believes that the bottom is close but not yet confirmed. For Bitcoin to confirm a bullish reversal, it needs to hold $80,000 as support and consolidate to break the downward compression. Strength and volume are key factors for a bullish shift, Swissblock noted.

The firm's analysis suggests that the current market conditions are not yet conducive to a sustained upward trend for Bitcoin. While the 90-day tariff pause has provided some relief, the overall market risk remains elevated. Swissblock's cautionary stance reflects the firm's commitment to providing accurate and timely analysis to its clients, helping them navigate the volatile crypto market with confidence.