BTC fell about 5% in a matter of days as downside risks increased due to tariffs and geopolitics.
summation
- BTC is undergoing a sharp correction similar to stocks, with new tariff uncertainty and geopolitical tensions cited as key bearish catalysts in the near term.
- Kraken Vice President Matt Howells-Barby marks ~$60,000 as critical support and warns that a breakdown could pave the way for the lower-mid $50,000 range.
- Historically, BTC does not bottom until the 50-week MA falls below the 100-week MA at the dead cross, suggesting further declines are possible before a durable bottom is formed.
Matt Howells-Barby, vice president of cryptocurrency exchange Kraken, said the company has identified a critical price level for Bitcoin as the digital asset undergoes a correction, according to a statement from management.
Howells-Barby said Bitcoin is experiencing a sharp correction similar to the movements of the stock market, with uncertainty surrounding tariffs cited as one of the key factors driving the decline. He noted that geopolitical tensions could pose additional downside risks in the near term, drawing comparisons with the macroeconomic pressures observed in April of the previous year.
Kraken executives pointed to the critical support level as a technically critical threshold. According to Howells-Barby, if this support line is broken, the price of Bitcoin could fall to low-to-mid levels.
Howells-Barby referenced historical data showing that Bitcoin typically does not set a clear bottom until the 50-week moving average falls below the 100-week moving average, a technical pattern known as a “dead cross.” According to our analysis, the absence of this crossover points to the potential for further declines below the lower range.
Market analysts note that volatility may continue to rise in the current environment, recommending investors focus on risk management strategies.