Bitcoin Crashes Below $80K: Where Is the Next Support Level?

Bitcoin, the world's leading cryptocurrency, has plummeted below the $80,000 mark, raising concerns among investors about the next support level. The recent price crash can be attributed to several primary factors, including U.S. President Donald Trump's tariffs, NVIDIA's earnings, and Bitcoin's correlation with U.S. stocks. As the market grapples with extreme fear, as indicated by the Crypto Fear and Greed Index, investors are eager to identify the next support level for Bitcoin.



The recent Bitcoin price crash has been driven by a combination of macroeconomic indicators and geopolitical events. U.S. President Donald Trump's announcement of steel and aluminum tariffs, and potential reciprocal tariffs on neighboring countries like Canada and Mexico, has sparked fears of a global trade war. This uncertainty has negatively impacted both U.S. stocks and Bitcoin, as investors seek safer havens. Additionally, NVIDIA's strong earnings initially boosted the market, but the subsequent sell-off in tech stocks, driven by concerns about Trump's trade policies, has also affected Bitcoin. Furthermore, Bitcoin's high degree of correlation with U.S. stocks, particularly the S&P 500 and Nasdaq 100, has contributed to the recent price decline.

Given the extreme fear sentiment in the market, as indicated by the Crypto Fear and Greed Index, there is a potential for a Bitcoin price rebound. However, identifying the next support level requires a careful analysis of the market dynamics and technical indicators. Some potential support levels could be:

1. $90,000: According to an anonymous X trader, the Bitcoin price may experience a brief pullback to the 20-day Weighted Moving Average (WMA) at $90,000.
2. $84,000: The same trader predicts that the Bitcoin price could drop to around $84,000 this week, although this scenario is considered less likely.
3. $73,615: Based on a double-top pattern formation at $108,300 and its neckline at $89,100, the depth of the double-top suggests a potential drop to $73,615. This target coincides with the March 2024 high and could serve as a significant support level.

In conclusion, the recent Bitcoin price crash has been driven by a combination of macroeconomic indicators and geopolitical events. As the market grapples with extreme fear, investors are eager to identify the next support level for Bitcoin. Potential support levels range from $90,000 to $73,615, based on technical analysis and market sentiment. However, it is essential to consider the broader macroeconomic environment and geopolitical risks when searching for the next support level for Bitcoin.