Bitcoin Eyes $81,600 as Key Support

 Bitcoin Eyes $81,600 as Key Support

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Bitcoin May Retest $75,000 to $85,000 Range, Support Level at $81,600

Bitcoin continues its bullish momentum, but market analysts suggest a potential retracement to the $75,000–$85,000 range. There's not much volume around $75,000 based on market depth. The key support level to watch is the 200-day Moving Average (MA) at $81,600, which could act as a strong buffer against further downside.

Technical Analysis: $81,600 as a Crucial Support Level

Historically, the 200-day MA has been a reliable indicator for Bitcoin’s long-term trend. At $81,600, this moving average represents a critical support zone. If BTC corrects to this level, buyers may step in, preventing further declines.

A sustained move below $81,600 could trigger additional selling pressure, pushing BTC toward the lower end of the $75,000 range. Conversely, a successful rebound from this level could confirm it as a strong foundation for another leg up.

Bullish Outlook: Higher Lows and Strong Demand

Despite short-term corrections, Bitcoin’s price structure remains bullish. Higher lows indicate strong buying interest, and institutional demand continues to provide support. If BTC holds above $81,600, the next upside target could be the $90,000–$100,000 zone.

Market Sentiment and Key Levels to Watch

Resistance Levels: $85,000, $88,500

Support Levels: $81,600 (200-day MA), $78,000

Macro Factors: Institutional accumulation, ETF inflows, and Federal Reserve policies

A successful retest of the $81,600 level could provide a strong base for Bitcoin to resume its uptrend. However, if selling pressure increases, traders should watch for deeper pullbacks toward $75,000.

Conclusion

Bitcoin’s price action suggests that a correction to the $75,000–$85,000 range is possible, with the 200-day MA at $81,600 acting as a key support level. Holding above this zone would reinforce the bullish trend, while a breakdown could lead to further declines. Traders should closely monitor price reactions at these levels to gauge Bitcoin’s next move.

Market Trading Strategy: Avoid Catching the Falling Knife

Market Trading Strategy: Avoid Catching the Falling Knife

The financial and market information provided on wisemoneyai.com is intended for informational purposes only. Wisemoneyai.com is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Bitcoin and altcoins have suffered significant losses due to macroeconomic fears and market uncertainty. Key support levels have been broken, signaling potential further downside in an unpredictable market.

What’s causing these uncertainties?

Recent macroeconomic uncertainties have been influenced by several key factors:

1. Geopolitical Tensions and Policy Shifts:

Trade Policies: 

The re-election of President Donald Trump has introduced unpredictability in trade relations, with potential shifts in tariffs and alliances affecting global markets. 

Business Environment:

Rapid policy changes, particularly in areas like diversity, equity, and inclusion (DEI), have led to a cautious corporate climate, with companies hesitant to make bold investments due to regulatory uncertainties.

2. Economic Indicators and Central Bank Responses:

Growth Projections:

Global economic growth is projected to decelerate to 2.9% in 2024 and 2025, influenced by geopolitical tensions and weakened performance in major economies like the US and China. 

Inflation and Interest Rates: Central banks, such as the Bank of Thailand, are maintaining cautious monetary policies, holding interest rates steady amid controlled inflation and assessing the impacts of government policies before making further adjustments. 

3. Market Volatility and Investment Risks

Asset Valuations: Concerns over speculative overvaluation, particularly in sectors like artificial intelligence, have been highlighted as potential risks to market stability. 

Corporate Caution:  Businesses are adopting defensive strategies, including restructuring supply chains and focusing on core markets, in response to increasing fragmentation and policy unpredictability. 

These factors collectively contribute to an environment of heightened uncertainty, influencing investment decisions and market dynamics globally.

Trading Strategy: Buy The Dip

The common advice is to "buy the dip" for potential gains. However, it remains unclear whether the market has truly found support after the recent selling pressure. Instead of rushing in, traders should exercise patience—observing price action and confirming stability before making entries.

To profit in this environment, aligning with the prevailing trend is crucial. Fighting against the market direction can lead to substantial losses. Instead of trying to catch a falling knife, traders should wait for clear signs of reversal or consolidation before taking positions.

Conclusion:

The current macroeconomic uncertainties stem from a combination of geopolitical tensions, central bank policies, and market volatility. Factors such as shifting trade policies, slowing global growth, cautious monetary strategies, and speculative asset valuations contribute to an unpredictable economic environment.

For traders and investors, this uncertainty highlights the importance of risk management and market alignment. Rather than attempting to predict bottoms, it is safer to follow the prevailing trend and wait for clear signs of stability before making significant moves.