Shatter Volatility with Insights: Mastering Cryptocurrency Trends Amidst Turbulent Markets
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Bitcoin (BTC) Price: Market Awaits Trump Tariffs as Short Sellers Risk $9.41 Billion
Market sentiment remains divided as the cryptocurrency market awaits a crucial decision from the US government regarding tariffs. The uncertainty has led to a 50-50 Bitcoin long-short ratio, according to Puckrin, which could result in a breakout or a breakdown.
The analyst emphasized that if the tariff news is milder than expected, he anticipates a potential breakout with $88,000 as the short-term price to watch. However, if the tariffs are more severe than anticipated, Puckrin warned of a possible Bitcoin breakdown near $79,000 in the short term or even lower to the next support level at $73,000 if extreme fear grips the market.
On the brighter side, low trading volume has been observed over the past few weeks. The crypto Fear & Greed Index remains stagnant around fear levels, suggesting that the market may be close to a low point. Puckrin concluded that while there is no guarantee of a rally in the short term, he believes that Bitcoin will ultimately rebound.
The possibility of a correction is not entirely ruled out by some analysts. Crypto analyst ‘Crypto Fella’ has shared a price chart hinting at a potential drop in Bitcoin’s price to between $78,692 and $70,000, followed by a push towards the more optimistic target of $94,655.
In addition, research from 10X noted that retail traders loaded up on memecoins during Bitcoin’s post-election rally to record highs in January. However, this was likely the market top, which started crumbling with many portfolios now holding falling meme coins. The analysis suggests that Bitcoin would need a renewed narrative to power the next major upward swing.
In contrast, institutional demand remains robust. Spot Bitcoin exchange-traded funds (ETFs) have received $2.75 billion in net inflows over three weeks following January 21st, despite rising trade tensions.
Not all factors are in favor of Bitcoin’s performance, however. The US job market is weakening, leading traders to demand risk-off assets, which may lead to decreased interest in Bitcoin. In February, the US Labor Department reported job openings near a four-year low. Additionally, yields on the US 2-year Treasury fell to a six-month low as investors sought the safety of government-backed securities.
Bitcoin traded around $85,000 on Tuesday, up 2.6% over the past day, according to CoinMarketCap data. Ethereum rose to approximately $1,900, with a 4.2% increase during that period, while other spot Bitcoin ETFs and similar instruments climbed by 3%.
Please share your thoughts in the comment section below.
Sources:
1. Puckrin
2. Crypto Fella
3. 10X
Source: https://blockonomi.com/bitcoin-btc-price-market-awaits-trump-tariffs-as-short-sellers-risk-9-41-billion/
