Bitcoin (BTC) Price Continues to Drop - Will It Hit the Low $70,000s Next?
Heavy selling continues to take place for Bitcoin (BTC). Is it a done deal that the price now falls to the low $70,000s, or is there still some hope left for the Bitcoin bulls?
With the crushing environment of the Trump tariffs, and a widely held disappointment following the Presidents White House Crypto Summit, the crypto market has continued to sell off. It appears that there may not be much to prevent the Bitcoin price from hitting the major support area at around $70,000, or even lower.
U.S. stock market in danger of crashing through 200-day moving average
Source: TradingView
Of huge importance for the price of Bitcoin is the U.S. stock market. In the daily chart above, it can be seen that the price has fallen out of the channel. This has happened on previous occasions, only for the bulls to push the price back inside again. The last time this happened, in early August 2024, was during the unwinding of the yen-backed carry trade.
Already, in terms of percentage drop outside of the ascending channel, the Trump tariff-inspired crash is now worse than the Japanese stock market crash. Also, the 200-day SMA has been reached and breached for the first time since October 2023.
Fridays closing daily candle held the 200-day SMA as support, after wicking through it, but Mondays open will be vitally important. If this stock market crash continues, things will only get worse for Bitcoin.
Bitcoin price falls out of triangle pattern
Source: TradingView
The daily chart for $BTC does not look good. The price has continued to roll over from the $109,000 all-time high, and on Sunday, it conclusively fell out of the triangle pattern. After closing the day at $80,700, Monday has seen a small bounce so far. That said, there could even be a bounce back up to confirm the triangle breakdown at around $86,000, but the price would then be up against strong resistance.
The Stochastic RSI at the bottom of the chart is suggesting a possible fake-out, as the indicators are shaping to come back below the trendline. This will be confirmed or otherwise by the end of Monday.
Bitcoin back to major support?
Source: TradingView
The weekly chart also does not inspire confidence. The beautiful-looking hammer candle of two weeks ago, which brought the price all the way back above the major ascending trendline, has nearly been cancelled out by the losses since then.
The magnet of the major support does appear to be attracting the price back to it. Would this be the end of the world if this took place? Absolutely not. This could end up being one last confirmation of this extremely important support, before the price heads back to the upside, and its arrival at the eventual bull market top.
One little ray of hope for a possible recovery has appeared in the shape of a crossover of the blue (fast) indicator line of the red (slow) indicator line in the weekly Stochastic RSI. It is still early days, and it may be that these indicator lines chop around at the bottom for a while longer. That said, they will eventually rise back to the top, and the price will rise with them. Could this take Bitcoin to a new all-time high?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Text source: Crypto Daily™
