What's Next for Bitcoin After Cryptocurrency Falls Below $90K? Key Levels to Watch
Bitcoin (BTCUSD) plunged below $90,000 today, continuing a slide from its record high set last month, as economic uncertainty weighs on investor sentiment.
Bitcoin’s price, which fell below $86,000 earlier in the day before recovering back around $89,000 recently, came under pressure from news that the Trump administration’s tariffs on Mexico and Canada will go ahead as planned. Investors typically view tariffs as inflationary, which could scuttle possible interest rate cuts this year, a move that would weigh on non-yielding risk-on assets like bitcoin.
Looking ahead, March is historically a mixed month for Bitcoin, with the cryptocurrency having logged an even amount of positive and negative returns for the month between 2013 and last year, according to data from crypto analytics site Coinglass.Bitcoin has slipped 5% since the start of the year, but is still up about 25% since the U.S. presidential election, amid hopes that the Trump White House and a crypto-supportive Congress will adopt policies that support the asset class.
Below, we take a closer look at bitcoin’s chart and use technical analysis to identify crucial price levels worth watching out for.
Since forming two distinct peaks between December and January, bitcoin’s price has continued to trend lower, creating a textbook double top pattern in the process. Moreover, a decisive breakdown below the neckline on above-average volume in Tuesday’s trading session confirms the formation.
It’s also worth pointing out that as the cryptocurrency made a slightly higher high last month, the relative strength index (RSI) forged a comparatively shallower peak to signal a bearish divergence, a technical occurrence indicating weakening price momentum.
However, recent
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