Bitcoin's price has sharply dropped amid fears of a potential trade war between the US and China, jeopardizing its critical support level.
Bitcoin's Price Drop Amid Trade War Threats
Bitcoin has fallen more than 6.5% in the past 24 hours, dropping below $78,197. Analysts attribute this decline to macroeconomic concerns related to US President Donald Trump's decision to impose import tariffs.
Critical Support Levels and Forecasts
According to Ryan Lee, chief analyst at Bitget Research, Bitcoin's key $80,000 support was breached. He also noted the possibility of further correction to $76,000-$78,000 this week. Some analysts warn that Bitcoin may revisit the $70,000 level.
Analysis of Current Correction
Analysts note that further downturn to $70,000 is less probable without significant new downside catalysts. However, if the $75,000 support is lost, it could trigger significant volatility. CoinGlass data indicates this would result in nearly $900 million worth of long position liquidations.
Bitcoin faces pressure from macroeconomic factors, yet experts believe the risk of further downside to $70,000 is minimal without additional catalysts.
