Bitcoin Price On The Brink: Failure To Hold This Level May Trigger Crash To $74,000
February 04 2025 - 9:15AM
NEWSBTC
Bitcoin (BTC) and other cryptocurrencies are experiencing renewed
selling pressure as escalating trade tensions between the United
States and China lead to fresh tariffs on both sides. The
largest cryptocurrency dropped to as low as $91,000 on Monday,
while major altcoins like Ethereum (ETH) and Solana (SOL) also
faced losses. CME Bitcoin Futures Open Interest Drops 4% The most
recent installment of tariffs comes after the US enacted a 10% tax
on all items from China, leading China to respond with its own
tariffs on certain US imports, such as oil and liquefied natural
gas, starting February 10. In another development, China has
launched an inquiry into Google LLC over supposed antitrust
infringements, intensifying the tension between the two economic
giants. Related Reading: Solana Retraces TRUMP Meme Pump Gains –
But Technicals Suggest A $300 Run This market turbulence has wiped
out the benefits from a short relief rally on Monday, which
occurred after the Trump administration decided to postpone tariffs
on Mexico and Canada for a month. The weekend’s initial declaration
of US tariffs had already triggered a steep drop in cryptocurrency
prices. Investor trust in riskier assets has been notably affected,
as US investors pulled a net $235 million from a set of 12
Bitcoin-centric exchange-traded funds (ETFs) on Monday. Moreover,
open interest in Bitcoin futures contracts on the Chicago
Mercantile Exchange (CME) Group Inc.’s derivatives market decreased
by 4%, reflecting a more cautious attitude among institutional
investors. President Donald Trump, recognized for his pro-crypto
position, has unintentionally brought more uncertainty to digital
asset markets. Although cryptocurrencies experienced a rise
following Trump’s election, the market now faces a difficult
landscape marked by geopolitical strife and regulatory obstacles.
Historical Trends Suggest Potential For Deeper Corrections As of
this writing, Bitcoin was trading at $98,970, about 13% shy of its
all-time high. Meanwhile, US ETFs investing in Ethereum witnessed
record trading volumes on Monday, with significant liquidation of
leveraged positions rattled by ongoing trade uncertainties.
The iShares Ethereum Trust, led by BlackRock, accounted for nearly
half of the $1.5 billion in trading volume among a group of nine
ETFs. ETH plummeted by as much as 27% on Monday, leading to over
$600 million in liquidations within perpetual futures markets,
according to Bloomberg data. Related Reading: TRUMP Coin Tanks
18%—Even Donald Trump Couldn’t Save It Analyzing current price
trends, crypto analyst Ali Martinez identified $92,180 as a
critical support level for Bitcoin, based on MVRV (Market Value to
Realized Value) pricing bands. If this support level fails,
the next target could be $74,400. Despite the recent price
correction, Bitcoin traders are still enjoying a profit margin of
3.36%. Historically, local bottoms have formed when profit
margins drop below -12%, suggesting that Bitcoin could have further
downside potential before reaching a true bottom. Additionally, the
MVRV Momentum indicator has remained in negative territory since
the beginning of the year, signaling ongoing market weakness.
Featured image from DALL-E, chart from TradingView.com
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