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The US markets are experiencing one of the massive pullbacks, with major stocks plunging by a huge margin. The crypto markets also heated up, recording more than $500 million in liquidation. The bearish waves rolled out within the markets due to Trump’s tariffs impacting the global markets. The trading volume spiked, increasing the selling pressure, while the market cap dipped close to $2.63 trillion.
Will Bitcoin Rise to $250K, or Will Macro Headwinds Hold Some Dominance?
Ever since the tariffs were announced, the markets began to experience massive selling pressure due to a notable rise in uncertainty. While gold prices continue to mark new highs, the strength of the US dollar has been constantly plunging. The DXY Index faced a massive 2.83% pullback while still holding above the crucial support at 100.
As seen in the above chart, the DXY Index seems to be in deep trouble as the DXY has printed massive bearish candles not seen in recent history. This could be a massive bullish signal for Bitcoin and the crypto markets, as the investors may find them a haven asset compared to the USD. On the other hand, the BTC hash rate has surged and marked a new ATH at around 975.96M, hinting towards an increased mining activity that sheds light on the bullish market sentiments.
The rise in the BTC hash rate suggests a more secured network that could boost the investor’s confidence. Despite the bullish signals, the BTC price is believed to break the crucial support as the star token may face a death cross soon.
Where’s Bitcoin’s (BTC) Price Heading Next?
It is quite evident that the selling pressure has been mounting over the BTC price rally over the past few days. As a result, the support at $81,000 will be tested anytime from now. However, an extended pullback to $80,000 is expected to confirm a bearish pattern, which could drive the price below the range.
As seen in the above chart, the 50/200-day MAs are heading towards a bearish crossover while the price is experiencing equal bullish and bearish pressure. If the seller’s dominance continues to prevail, the BTC price is expected to form new bottoms for the year that could further trigger a strong recovery phase, reclaiming the lost resistance levels above $85,000. This suggests Bitcoin is about to offer a good buying opportunity in the coming days, probably below $79,000.