Bitcoin dropped to eight-day lows on Tuesday as global macroeconomic pressures tested market sentiment.
The cryptocurrency retraced toward $90,000 after a “failed” breakout from its multimonth trading range, causing concern among bulls.
Technical Weakness
Analysts noted that the current decline was largely technically driven, despite ongoing geopolitical headlines influencing risk appetite.
Some foresee Bitcoin potentially dropping to 15-month lows if current support levels fail to hold.
Overnight liquidations in US futures markets hit $360 million as traders reacted to renewed US-EU trade war tensions, triggered by President Trump’s rhetoric regarding Greenland.
“This move had nothing to do with narratives. We’ve seen it developing in the charts for over a month,” said Keith Alan, cofounder of Material Indicators, referencing the market’s technical pressures.
Key Chart Levels
Alan highlighted a “death cross” pattern on the 21-week and 50-week SMAs, historically a signal of a macro bottom, with the 100-week SMA at $86,900 as a potential support.
Trader Rekt Capital noted that Bitcoin must reclaim $93,500 to confirm a successful retest of the weekly range, following the marginal weekly close above that level.
Technical charts also showed BTC slipping below its 200-period simple and exponential moving averages on shorter timeframes, signaling further downside risk.
Market Outlook
Veteran trader Peter Brandt warned of a potential retreat below $60,000, a level last seen in October 2024.
BTC/USD remains vulnerable to macroeconomic shocks, with traders closely watching geopolitical developments and technical support levels.
Despite these pressures, analysts emphasize that longer-term trends may still offer opportunities, with careful observation of weekly and monthly charts guiding future trades.
The cryptocurrency continues to navigate a volatile landscape where geopolitical tensions, macroeconomic policies, and technical patterns intersect.
