After the U.S. administration’s 90-day tariff pause, the focus has shifted back to Bitcoin
$84,412. However, it is still too early to say that the market has relaxed. Leading analysis company Swissblock highlights that despite Bitcoin’s attempts at upward movement, high-risk signals persist. The firm emphasizes the need for caution due to the lack of clarity in technical indicators and the absence of a solid support base.
High-Risk Indicators Persist
According to Swissblock’s evaluations, a significant reduction in market risk levels is essential before one can speak of a bottom formation for Bitcoin. The firm analyzes risk levels based on price movements, on-chain data, and volume metrics through a tool called the “Bitcoin Risk Signal.” It is stated that while risk is currently under control, it has not yet dropped to lower levels. While the recent price surge has created optimism among investors, there is still no strong technical foundation supporting its sustainability. Swissblock asserts that a decline in risks and observation of volume-supported purchases are prerequisites before forming a bullish outlook. Otherwise, even if prices appear to rise, it could be an unfounded movement. This scenario necessitates a cautious monitoring process for investors. Market analysis suggests that short-term upward movements may not indicate a shift in the primary trend.
Critical Role of the $80,000 Support Level
Experts believe that for Bitcoin to technically enter a new upward trend, it needs to establish a strong support base around $80,000. Swissblock indicates that if this level is maintained and downward pressure breaks, a more solid upward momentum could be achieved. However, this support level is currently under scrutiny, and the market direction remains unclear. Swissblock stated, “Bitcoin must hold the $80,000 mark and demonstrate strength and volume to break the downward congestion,” highlighting that the technical outlook is not yet fully positive. Although it rose by 4.7% within 24 hours, clearer signals are needed for this increase to be sustainable. Movements above this level are vital for investors. If the support is not maintained, a downward correction wave may be triggered. Therefore, both technical indicators and volume profiles should be closely monitored.
Limited Impact of Tariff Pause; Market Remains Cautious
The U.S.’s decision to pause tariffs for 90 days initially created a slight easing in market tension. However, this development does not imply that Bitcoin has found a new base or that a lasting upward trend has begun. Swissblock asserts that such macroeconomic moves have limited effects in reducing market risk, and the market continues to exhibit natural fluctuations. It is noted that Bitcoin is still within a “downtrend” phase, and this decline has not yet concluded. Therefore, short-term positive movements should not mislead investors. Each bounce occurring before a solid foundation may lead to potential new selling pressures. Experts indicate that the most crucial factor determining the market’s direction is the maintenance of technical levels along with market confidence supported by volume. Otherwise, the market could revert to a volatile and uncertain structure.
