The recent tariff pause by the U.S. has drawn attention back to Bitcoin, though experts warn against premature conclusions regarding market recovery.
Are High-Risk Signals Still Present?
Swissblock's assessments indicate that a considerable drop in market risk is crucial before Bitcoin can be said to have reached its bottom. The firm utilizes a tool called the 'Bitcoin Risk Signal' to analyze risk levels by evaluating price trends, on-chain data, and volume metrics. Presently, while the risk is manageable, it hasn’t decreased sufficiently.
What Does the $80,000 Support Level Mean?
Experts assert that for Bitcoin to establish a new upward trajectory, it must solidify a support base around $80,000. Swissblock notes that if this level can be sustained and downward pressure alleviated, a more substantial upward move could occur. Nonetheless, this crucial support is currently under vigilance, and the market’s path remains ambiguous.
Market Conditions Remain Uncertain
The initial easing effects of the U.S. tariff pause have not established a new foundation for Bitcoin, according to Swissblock. They contend that macroeconomic factors have little influence on market risk reduction, leading to ongoing natural market fluctuations. Currently, Bitcoin remains in a downward phase, and this decline has yet to reach its conclusion. Consequently, investors should be wary of interpreting short-term gains as a definitive trend reversal.
In the current Bitcoin market conditions, despite short-term upward trends, there are still high levels of risks, necessitating a cautious approach to interpreting the situation.
