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.
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
