Should Investors Hold on Bitcoin as It Nears Support Level?
Bitcoin continues to slip from its recent highs as its feels the pressure from new tariffs and a poor jobs report.
Quick overview
- Bitcoin (BTC) is currently priced at $114,305, nearing its support level of $112K, which may indicate a potential upward trend soon.
- Recent market conditions, including tariff concerns and a struggling job market, have led to muted crypto trading and a slight decline in Bitcoin's value.
- Investors are advised to hold off on buying or selling Bitcoin for now, as it is expected to rise to around $119K in the coming weeks.
- Despite a recent 0.64% drop, Bitcoin's trade volume remains high, and there is optimism for future growth, especially if interest rates are cut by the Federal Reserve.
Live BTC/USD Chart
Dropping to $114,305 (BTC/USD) for Wednesday, Bitcoin (BTC) is close to its support level of $112K. That could indicate that it will start to climb soon.
Bitcoin has had trouble holding its ground the last few days. Between escalating tariff concerns and a struggling job market, crypto trading has been muted over the last week. Bitcoin may continue to drop over the next few days, especially through Thursday as the deadline for new tariffs to be collected goes into effect.
BTC/USDIs It Too Early to Buy?
We suggest holding off on selling or buying Bitcoin. The token is undervalued at the moment and is bound to climb much higher in the next few weeks. Investors should expect a price of around $119K in the near future, as that has been a value that the coin has had little trouble achieving lately.
It is also not the right time to buy, since the coin is trending down but not by much. We may see a drop closer to $112K, which is the current support level. There is potential for BTC to drop lower between today and the weekend as new tariffs take effect and the United States starts to collect on imports from other countries.
Bitcoin has lost 0.64% over the last 24 hours, but its trade volume remains elevated- $58.8 billion in the last day. There is plenty of interest in the coin as it slips further from its recent highs, and the current bull market could be waiting for a further drop before pouncing on the value priced crypto token.
Bitcoin’s all-time high was achieved just three weeks ago, so there is ample reason to expect the coin to climb soon, but it is facing the challenges of tariffs, a tightening economy, and sticky inflation. If an interest rate cut is issued by the Federal Reserve soon, that could help propel the coin back near its record high. Investors should look out for news of an incoming cut as well as indications that the United States’ trade partners are willing to negotiate the new tariffs.
Over the last month, Bitcoin has climbed 4.87%, so its period of growth is still active, and we could see a much higher price point for the coin in the next couple of weeks. Overall, the cryptocurrency market is elevated, despite recent losses. Thanks to the GENIUS Act being signed into law, there is potential for the crypto market as a whole to set new records throughout the rest of the year.
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