Bitcoin (BTC) has made a noteworthy comeback, rallying into the April 7 Wall Street open as US stocks rebounded from a significant 4% loss. Recent data from Cointelegraph Markets Pro and TradingView indicates that the price zone around $80,000 has become a focal point for BTC/USD, particularly after a recent dip to five-month lows.
The ongoing consequences of US trade tariffs are reverberating across global markets, causing considerable losses in Asian stocks. However, reports suggesting a potential 90-day pause in the implementation of these tariffs, alongside negotiations with more than 50 US trading partners, have helped futures markets stabilize before the trading day commenced. This contributed to the S&P 500 and Nasdaq Composite Index avoiding a catastrophic drop reminiscent of the ‘Black Monday’ crash of 1987.
As noted by The Kobeissi Letter, Nasdaq futures plummeted as low as -7% at one point but managed to recover. The S&P 500 has now entered bear market territory for the first time since 2022, with a decline exceeding 20% from February’s all-time highs.
The trading firm QCP Capital praised the international negotiations over tariffs as ‘remarkable,’ but cautioned that markets are likely to remain unsettled as stakeholders strive to secure beneficial agreements.
The U.S. President has emphasized his desire to prevent a stock market downturn, commenting that sometimes ‘medicine’ is necessary. The upcoming days could present challenges for both global markets and the administration if significant progress is not achieved soon.
According to the CME Group’s FedWatch Tool, market expectations regarding imminent interest rate cuts by the Federal Reserve are shifting as the June meeting approaches.
Establishing Support: Bitcoin’s Price Safety Net
Bitcoin is working to establish a robust support level in the mid-$70,000 range, having recently approached previous all-time highs from March 2024. Glassnode, an on-chain analytics firm, indicated that there is substantial backing around the $74K price point, which aligns with the first major supply cluster below $80K. Here, over 50K BTC are currently held at around $74.2K.
Glassnode also elaborated that the support between recent lows and $70,000 corresponds to approximately 175,000 BTC of ‘cost basis clusters.’ The most significant price point in this range is $71.6K, while the next major support lies at $69.9K, where about 68,000 BTC are stored.
This data supports the notion that the $69,000 area, along with adjacent zones, is a statistically reliable long-term support level for Bitcoin, unlikely to experience significant downturns.
Disclaimer: This article does not offer investment advice or recommendations. Readers are encouraged to conduct thorough research before making investment decisions.
