Following a significant decline to a multi-week low of $74,409, Bitcoin has observed a slight rebound. However, analysts warn that multiple resistance levels, specifically between $80,500 and $82,500, could hinder the rally or potentially prompt another downward movement as of Tuesday morning.
Is Bitcoin Experiencing a Price Recovery Today or Facing Another Decline? 4
Bitcoin Recovers After Significant Decline
Earlier on Monday, Bitcoin (BTC) experienced a sharp drop, breaking beneath essential support levels at $82,000, $81,200, and ultimately falling below the psychologically significant $80,000 mark. This decrease was accompanied by a broader downturn in the cryptocurrency market due to macroeconomic uncertainties and new U.S. trade tariffs, including:
A 25% tariff on imports from Canada and Mexico
A 20% increase in tariffs on Chinese products
Increased risk-off sentiment observed in global markets
This sell-off caused BTC to plummet to $74,409 before buyers entered the market.
Unstable Recovery: Resistance Ahead for BTC
Bitcoin has managed to rebound above $76,800, climbing over 6% from its previous lows. This recovery has also reclaimed the 50% Fibonacci retracement of the recent decline from $83,680 to $74,409, indicating an increase in bullish momentum.
Nonetheless, the journey upward is met with considerable resistance:
$80,400 – Immediate resistance, further supported by a bearish trend line on the hourly chart (BTC/USD, Kraken data).
$81,500 – A significant resistance area and the 76.4% Fibonacci retracement level.
$82,500 – A crucial obstacle that must be surpassed for a potential breakout towards $83,500 or even $85,000.
“Breaking through $81,500 and $82,500 is essential,” stated analysts from SignalPlus. “If the bulls are unable to clear these levels, the market remains at risk of new selling pressure.”
Bearish Scenario for Bitcoin Still Possible
Despite the recent bounce, failing to break above $80,500 or $81,500 might lead to another downturn. Essential support levels to monitor include:
$79,500 – Immediate support.
$78,000 – A historically significant level.
$76,500 – A critical threshold for short-term buyers.
$75,000 and $74,400 – The last lines of defense before potential panic-selling resumes.
“While we have observed short-term optimism, the overall technical formation still appears bearish unless BTC successfully reclaims its 100-hour simple moving average,” remarked Jeff Mei from BTSE.
Technical Indicators for BTC
Hourly MACD: Momentum is building within the bullish zone.
Hourly RSI: Currently above 50, indicating mild bullish strength.
Trend Line Resistance: Strong resistance at $80,400.
Upcoming Considerations
Will Bitcoin retest and maintain levels above $80,500?
Can bulls surpass $81,500–$82,500 for a confirmed breakout?
Will macroeconomic developments and tariff discussions reignite selling pressure?
Until BTC surpasses $82,500 with adequate volume and momentum, any upward movement may be short-lived.
Summary
While Bitcoin’s recovery from Monday’s lows is encouraging, it remains unconvincing. A rejection at resistance levels could pull BTC back toward the $75,000–$74,400 danger zone. Traders should prepare for volatility as the market seeks clarity on global economic and trade conditions.
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