Bitcoin Price Crashes Below $80K! Key Price Levels to Watch as Tariff Fears Shake the Market

The Bitcoin price declined on Sunday night, dipping below the psychologically significant $80,000 threshold. The top cryptocurrency lost almost 5% to exchange hands at about $79,000, following losses in U.S. index stock futures. The decline follows as investors become increasingly concerned with rising global trade tensions. China’s retaliatory tariffs on U.S. imports due to sweeping U.S. duties imposed by the Trump administration have fueled fears of a protracted trade war that will push the world economy into recession.

Liquidation Pressures Mount as Market Reacts

The sudden price decline has caused massive liquidations in the crypto market. Bitcoin has lost over $250 million worth of long positions over the last 24 hours—the biggest one-day liquidation record since March 7, CoinGlass analytics platform reports. Long speculators had to close out their positions at a loss, which added to the squeeze.

Year to date, Bitcoin is down approximately 15%, reversing some of its huge gains in the previous year. Bitcoin rallied in 2024 on expectations of regulatory clarity and institutional adoption, but the current geopolitical tensions and related market uncertainty are now squarely weighing on sentiment.

Technical Patterns Signal More Pain Ahead

Technically, the latest price action in Bitcoin was bearish. Over the last month, the cryptocurrency dipped below its 200-day moving average—a long-term support level. Since then, it has been trending in a rising wedge pattern, which is normally a bearish sign. The breakdown from the wedge in late March sealed the fate of the continuation of the downtrend.

Adding to the bleak outlook, Bitcoin has now created a “death cross” on its chart—a bearish technical pattern in which the 50-day moving average dips below the 200-day moving average. This crossover typically is a harbinger of long-term vulnerability to come and has frightened many investors.

Support Levels to Watch Closely

There are multiple levels that investors and traders should be keeping an eye on for support. If Bitcoin can’t maintain current lows, then the next key level is around $74,000. That’s where a long-term trendline, one that crosses through major price points—the March 2023 high and the October high that set up the November breakout a year ago—converges.

This trendline can give some technical support, and there can be some buying interest or at least a slowing of the declines. But if this support gives way, it can unleash an even greater correction.

Outlook: High Caution, Watching for Stability

As investors ride out the volatility brought by global tariff wars and technical weakness, Bitcoin remains under intense pressure. Traders watch closely at geopolitical developments as well as price action for signs of stabilization or weakness. Until trade war uncertainty subsides, Bitcoin and the broader crypto market can expect to stay in high volatility.

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