Bitcoin’s decline shows no sign of easing, with the crypto sliding another 5% today. It’s now down roughly 35% from its record high, reaching an area where you’d normally expect some dip buying—yet so far, the buyers have stayed away. Such deep pullbacks are more common in cryptos given their heightened volatility, but the absence of interest is still notable.
What’s behind the current risk-off sentiment?
There are several contributing factors. Despite Nvidia’s strong earnings, tech stocks resumed their decline yesterday, sending a major bearish signal on the Nasdaq 100 chart. Beyond valuation worries, the recent surge in Japanese yields has rattled investors, sparking an unwinding of the carry trade. When these trades reverse, leveraged positions across assets — including tech stocks, crypto, and even gold — tend to suffer. Precious metals have not been spared, with silver down around 4% at the time of writing.
Key levels to watch on BTC/USD
The next major support zone on the BTCUSD chart comes in around $80,000, which served as a launchpad back in April. Bitcoin could even dip towards $75,000 before potentially finding support. So, both these levels are important to keep an eye on.
For resistance, yesterday’s low near $86,000 stands out on the daily chart. On the hourly timeframe, an additional level appears around $88,500. The speed of recent declines suggests a test of $80,000 may not be far away unless sentiment turns swiftly.
-- Written by Fawad Razaqzada, Market Analyst
Follow Fawad on Twitter @Trader_F_R
