Bitcoin’s price plummeted below $90,000 on Tuesday, marking a three-month low and continuing its slide from a record high set last month. The cryptocurrency’s decline is attributed to economic uncertainty weighing on investor sentiment.
A double top pattern formed between December and January, with the recent breakdown below the neckline confirming the formation. Investors should monitor crucial support levels around $80,400 and $74,000, while key resistance levels near $98,500 and $106,000 are also worth watching.
The price drop is linked to news that the Trump administration’s tariffs on Mexico and Canada will go ahead as planned, which could lead to higher inflation and interest rate cuts. This would negatively impact non-yielding risk-on assets like Bitcoin.
Historically, March has been a mixed month for Bitcoin, with an even split of positive and negative returns in previous years. The cryptocurrency is still up about 25% since the U.S. presidential election amid hopes for supportive policies.
Technical analysis reveals that a decisive breakdown below the neckline confirms the double top pattern. However, recent selling has pushed the relative strength index (RSI) into oversold territory, suggesting near-term upswings.
Key support and resistance levels to watch include $80,400 and $74,000 for support, and $98,500 and $106,000 for resistance.
Source: https://www.investopedia.com/watch-these-bitcoin-price-levels-as-cryptocurrency-falls-below-usd90k-11686578