Given the huge turmoil experienced in traditional markets during the last few days, Bitcoin (BTC) has shown hints of strength, and did not fall precipitously as might have been expected of a risk asset. However, it did dip under $75,000 before recovering. That said, $80,000 is now horizontal resistance. Can Bitcoin get back above?
A recovery on the way?
According to a recent YouTube video on the Raoul Pal The Journey Man channel, macro economist Pal and his colleague Julien Bittel agree that financial conditions will ease into the rest of 2025. They say that various lagging indicators are pointing to a recovery for U.S. equities and crypto which could start in the next few weeks.
Their forecast could be right or wrong of course, and even if right, the view is entirely a macro one, and so volatility over the short term can be expected.
$80,000 becoming resistance
Source: TradingView
Looking at the $BTC price, it could be argued that it has held up comparatively well, and even though it did fall under $75,000 at one point on Monday, the price has recovered. The current situation is that Monday’s daily candle did close underneath the $80,000 support, thereby flipping it into resistance.
As can be seen in the 8-hour chart above, the bulls are trying to get back above this level, but the candle wicks to the upside show that the bears are forcing the price back down. It may well be that further fall out from the Trump tariffs does eventually lead to capitulation down to the top of the previous bull market at $69,000. The orange line at the bottom of the chart shows how close this is now.
Rapid descent to $69,000 could be likely
Source: TradingView
The weekly chart for Bitcoin shows how the price is attempting to break down underneath the $80,000 support. A weekly candle close beneath this level would be more serious for the bulls, and would suggest that a descent to $71,000 through to $69,000 would be quite likely, given that there is no support until these levels.
With the majority of short term holders underwater even now, a drop to $69,000 could be a real capitulation event with many retail investors fleeing the market in fear.
Nevertheless, this could be an excellent opportunity for those seeking to buy what could potentially turn out to be a bottom. Eight months of tortuous sideways price action, allied to the tops of the last bull market, make this level extremely strong. Be that as it may, a confirmed break beneath would definitively spell the end of the bull market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
