Bitcoin plunged $90,000 to a three-month low on Tuesday, continuing its slide from last month’s record high set, with economic uncertainty weighing on investor sentiment.
The cryptocurrency collapsed under the neckline of a double-top pattern with above average volume in trading sessions on Tuesday, confirming its formation.
Investors will need to watch key support levels around $80,400 and $74,000 on the Bitcoin charts, as well as key resistance levels of $98,500 and $106,000.
Bitcoin (btcusd)) It continued its slide from last month’s record high set, falling below $90,000, as economic uncertainty places emphasis on investors’ sentiment.
Bitcoin prices, which fell below $86,000 recently before recovering to around $89,000, have been pressured by news that Trump administration tariffs on Mexico and Canada will go as planned. Investors usually view tariffs as inflation. Inflation could potentially cut interest rates this year. This is a move to weigh and consider non-risk-on assets like Bitcoin.
March has historically been a mixed month for Bitcoin, according to data from Crypto Analytics site Coinglass. Bitcoin has slipped 5% since the start of the year, but has risen about 25% since the US presidential election, as the Trump White House and Cryptocurrency Congress hope to adopt policies that support asset classes. It’s there.
Below we take a closer look at the Bitcoin chart and use technical analysis to identify key price levels that are worth paying attention to.
Since forming two different peaks between December and January, Bitcoin prices have continued to decline, creating a double-top pattern of textbooks in the process. Additionally, the decisive breakdown below the above average volume neckline during Tuesday’s trading session confirms formation.
It is also worth pointing out that cryptocurrencies rose slightly last month, so the relative strength index (RSI) fakes a relatively shallow peak and shows a bearish divergence.
However, recent sales have pushed RSI indicators up into the territory where they were sold, increasing the chances of a near-ranking ranking.
Identify some important support and resistance levels on Bitcoin charts that investors may be looking at.
More sales under the double-top neckline will allow you to move to the $80,400 level first. This area on the chart may provide support near the 200-day moving average (MA) and the end and opening prices of two keybars formed during impulsive travel in mid-November.
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