Bitcoin price recently dropped to a four-month low of $74,409 amid Trump’s tariff announcements
BTC has begun recovering and is trading around $79,673, briefly crossing $80,000
A “death cross” technical pattern has formed, potentially signaling more near-term weakness
Key resistance levels are at $80,500 and $81,500; support levels at $79,500 and $78,000
Bitcoin needs to reclaim the 50-week EMA (around $77,500) to avoid deeper correction to $69,000-$70,000 range
Bitcoin has started to recover after falling to a four-month low earlier this week. The world’s largest cryptocurrency briefly touched $74,409 as markets reacted to President Donald Trump’s announcement of new global tariffs. The price has since rebounded to around $79,673, briefly crossing the $80,000 mark on Tuesday.
The recent price movement comes as part of a broader market reaction to Trump’s tariff plans. The President unveiled reciprocal tariffs on several major economies last week, with the duties being larger than markets had anticipated.
Trump doubled down on his tariff stance over the weekend. He even threatened China with steeper duties if Beijing did not withdraw its retaliatory tariffs on the U.S.
These announcements triggered a massive sell-off in global risk assets. Reports indicate the move caused a $9.5 trillion wipeout in global equity markets.
Bitcoin, often viewed as a speculative, risk-driven asset, followed the broader market trend downward. The cryptocurrency dropped alongside stocks and other risk assets.
Technical Indicators Point to Challenges Ahead
Bitcoin is now trading below $81,200 and the 100-hour Simple moving average. This suggests the recovery may face obstacles.
On the chart, a bearish trend line has formed with resistance at $80,400. This trend line could limit Bitcoin’s upward movement in the short term.
The cryptocurrency has also formed a “death cross” this week. This occurs when a short-term moving average falls below longer-term moving averages. In Bitcoin’s case, its 50-day moving average dropped below its 200-day moving average.
A death cross is considered a bearish signal by many traders. It could indicate more near-term weakness in the cryptocurrency market.
Technical analysts note that Bitcoin is testing a critical threshold—the 50-week exponential moving average (50-week EMA). This average, currently near $77,500, has historically served as a dividing line between bull and bear phases.
Support and Resistance Levels to Watch
For those tracking Bitcoin’s price movement, several key levels have emerged. On the upside, immediate resistance is near $80,400.
The first major resistance level sits at $81,500. This corresponds to the 76.4% Fibonacci retracement level of the recent decline from $83,680 to $74,409.
If Bitcoin can break above $82,500, the price could rise further to test the $83,500 level. Additional gains might push the price toward $85,000.
On the downside, immediate support is near $79,500. The first major support level is around $78,000.
If these levels fail to hold, further support can be found at $76,500. Additional losses might send the price toward $75,000 or even the recent low at $74,400.
Technical indicators show the hourly MACD gaining pace in the bullish zone. The hourly RSI for BTC/USD is now above the 50 level, suggesting some positive momentum.
Short-term holders have an average cost basis of about $89,000, according to Glassnode data. The lower band of this range sits at $69,000, which analysts consider a potential “max pain” zone where short-term investors might capitulate during pullbacks.
Approximately 175,000 BTC are held in the $74,000-$70,000 range. The largest cluster is at $71,600, holding 41,000 BTC. This could provide a buffer if the price falls further.
Trump’s tariffs are set to take effect from Wednesday. The President has also threatened tariffs on pharmaceutical and semiconductor imports, creating continued uncertainty in markets.
Several long-term holders of Bitcoin were seen moving coins onto exchanges in recent weeks. This activity often precedes selling and could add pressure to prices.
The broader cryptocurrency market has followed Bitcoin’s recovery pattern. Ethereum rose nearly 3% to $1,585.96, recovering from a two-year low. XRP increased 6.9% to $1.8857, while Solana, Cardano, and Polygon rose between 7% and 9%.
With tariffs set to begin and uncertainty remaining high, Bitcoin traders will be watching key technical levels closely in the coming days.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 
