Key Takeaways
- Bitcoin dropped below the closely watched $80,000 level on Sunday evening, tracking U.S. stock index futures sharply lower amid intensifying worries about the impact of tariffs.
- The 50-day MA has crossed below the 200-day MA to form an ominous death cross, a chart pattern that warns of further selling.
- Investors should watch key support levels near $74,000, $65,000, and $57,000, while also monitoring a major overhead area near $87,000.
Bitcoin (BTCUSD) dropped below the closely watched $80,000 level on Sunday evening, tracking U.S. stock index futures sharply lower amid intensifying worries about the impact of tariffs.
The pioneer cryptocurrency plunged 5% to around $79,000 as market participants braced for further market volatility after China on Friday responded to the Trump administration’s recently announced sweeping tariffs with retaliatory duties, heightening concerns of a drawn-out trade war that could trigger a worldwide recession.
Bitcoin also continues to face selling pressure from liquidations, an event where falling prices force traders to sell their bullish bets on the cryptocurrency at a loss. According to crypto analytics site CoinGlass, bitcoin has suffered $250 million in long liquidations over the past 24 hours, the highest amount since March 7. Bitcoin has tumbled 15% year to date after more than doubling last year on expectations of regulatory tailwinds.
Below, we take a closer look at bitcoin’s chart and apply technical analysis to identify key price levels worth watching out for amid a tariff-driven global market selling rout.
Death Cross in Focus
After falling below the 200-day moving average (MA) last month, bitcoin’s price consolidated within a rising wedge before breaking down below the bearish pattern in late March, signaling a continuation move lower.
Indeed, the cryptocurrency’s price has continued its downtrend, with declines accelerating on Sunday evening after a brief period of sideways drift. It’s also worth pointing out that the 50-day MA has crossed below the 200-day MA to form an ominous death cross, a chart pattern that warns of further selling.
Let’s identify three key support levels on bitcoin’s chart that investors may be watching and also locate a major overhead area to eye during potential recovery efforts in the cryptocurrency's price.
Key Support Levels to Watch
A breakdown below last month’s low could see a move to around $74,000. This area on bitcoin’s chart may provide support near a multi-month trendline that connects last year’s prominent March peak and late-October high that preceded November’s election-fueled breakout.
The bulls’ failure to defend this important technical level could trigger a decline to the $65,000 level. The cryptocurrency’s price may attract support in this region near last year’s August and September peak’s, which closely align with the October trough.
Interestingly, this location also sits in the same neighborhood as a projected bars pattern downside target that takes bitcoin’s move lower from late January to early March and repositions it from the rising wedge pattern’s breakdown point.
Further selling could bring the $57,000 level into play. Investors may look to accumulate bitcoin near last year’s May swing low, with the area also sitting just above three prominent troughs that formed on the chart between July and September.
Major Overhead Area to Eye
During potential recovery efforts in bitcoin's price, investors should eye the $87,000 area. This region currently provides a confluence of overhead resistance from the 50- and 200-day MAs and a range of comparable trading levels on the chart stretching back to early November last year.
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