BTC/USD outlook: Bitcoin tumbles below 80K on risk aversion wave
|
BTC/USD
Bitcoin was the top loser on Friday following over 6% drop during Asian and early European trading.
The biggest cryptocurrency remains under increased pressure, mainly due to broader risk aversion, driven by the US tariff policies which continue to fuel uncertainty and prompt investors’ migration into safety.
The sentiment also soured by lack of expected overhaul of US crypto market regulations that was promised by President Trump.
Bitcoin price dipped below psychological 80K support and cracked important Fibo level at $79160 (50% retracement of $48738/$109582), trading at these levels for the first time since early November.
It is also on track for weekly loss of 16% and a record monthly drop in February, which so far retraced more than a half of strong gains in Nov/Jan, driven by euphoria after Trump’s election victory.
Technical picture on daily chart is bearish and supportive for further losses, but oversold conditions and significance of $80K zone (100DMA / psychological / Fibo 50%) suggest that bears may take a breather.
Profit taking at the end of the week and month is also expected to contribute to corrective action.
Session high ($84838) and broken Fibo 38.2% ($86339) reverted to resistances, guarding key barrier at $90K (former key support) which should cap extended upticks and keep bears in play.
Res: 81582; 82556; 84838; 86339.
Sup: 90000; 79160; 78115; 75801.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.