Bitcoin Price Analysis: BTC Struggling To Reclaim $80,000 Despite Recovery
Bitcoin (BTC) continued its recovery after experiencing unprecedented volatility on Sunday and Monday. The flagship cryptocurrency had plunged to a low of $74,389 on Monday, a level not seen since November 2024, as Donald Trump’s tariffs decimated markets.
However, BTC has rebounded from its multi-month lows, and is on the verge of reclaiming $80,000, and is currently trading at $79,850, up almost 2% over the past 24 hours.
Bitcoin (BTC) Registers Sharp Recovery
Bitcoin (BTC) and the broader crypto market rebounded on Tuesday as market sentiment improved amid speculation the US may soften its stance and open the door for negotiations with trading partners. BTC and the broader crypto market’s recovery reflected a shift in investor risk appetite, with Treasury yields rising from six-month lows, gold shifting lower, and oil bouncing back from four-year lows. As a result, traders appeared to shift out of safe-haven assets and bet on riskier assets, including crypto. Alankar Saxena, Co-founder and CTO at Mudrex, stated,
“The crypto market is showing early signs of recovery, led by Bitcoin, Ethereum, and Solana. Bitcoin’s long-term holder supply continues to rise, indicating confidence despite recent volatility. If global trade tensions ease and macro data such as U.S. inflation comes in softer, it could further support this rebound.”
BTC’s recovery also dragged altcoins back up from multi-month lows, with Solana (SOL) reclaiming $100 and moving to $110 after an increase of over 9%, while Ethereum (ETH) reclaimed $1,500 after dropping to a low of $1,412. Vikram Subburaj, CEO of Giottus, stated,
“Altcoins are bouncing back as well, with Solana, Cardano, and Avalanche showing strong upward momentum. Ethereum is holding well above the $1,500 level, which may act as a short-term floor if Bitcoin remains stable above $80,000. However, the market remains highly sensitive to developments around U.S. tariffs.”
However, the Crypto Fear & Greed Index remained rooted in the “Extreme Fear” zone, indicating investor caution.
iShares Bitcoin Trust Expands Custody Services With Anchorage Partnership
iShares Bitcoin Trust ETF (NASDAQ: IBIT) has entered into a partnership with Anchorage Digital Bank N.A., in a move to enhance its digital assets custody solutions. The iShares Bitcoin Trust ETF is valued at $44 billion and has seen significant price movements, reporting a 25% gain over the past 6 months despite a substantial 8% decline this week. According to data from InvestPro, the ETF has an excellent financial health score of 4.21. The agreement, which comes into force on Monday, compliments existing custody services provided by Coinbase and its affiliates.
The Anchorage partnership enables the maintenance of segregated custody accounts. These accounts can be used for the safekeeping and management of the Trust’s Bitcoin holdings. While the Trust’s current holdings with Coinbase remain unchanged, the addition of Anchorage reflects the Trust’s commitment to managing risk and growth within the digital asset sector. Anchorage will also be required to store all private keys related to the Trust’s Bitcoin in cold storage. The agreement also discusses protocol forks and gives Anchorage the discretion to support or continue support for any branch. However, it must commit to making reasonable efforts to maintain support for at least one branch.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) registered a dramatic recovery after dropping to a low of $74,389 on Monday after crypto and traditional markets witnessed a bloodbath thanks to Donald Trump’s trade tariffs. Investors worried about an adverse market impact and recession adopted a risk-averse sentiment, and made a beeline for safer assets. However, BTC’s recovery has seen the flagship cryptocurrency bounce back as it looks to reclaim $80,000. However, it is facing resistance at this level.
BTC attempted to rally earlier on Tuesday, reaching a day high of $80,875. However, it lost the gains made earlier in the day and dipped below $80,000. The flagship cryptocurrency is struggling to push beyond $80,000. However, crypto analyst Michael van de Poppe believes it's only a matter of time before BTC surges past this level. According to Poppe, BTC’s return to $79,000-$80,000 demonstrates strength and resilience. The analyst added that even if BTC fails to reclaim $80,000 in the short term, he envisions it taking significantly higher levels this year.
“#Bitcoin attacking $80,000 is a strong sign. I don’t know whether we’ll be having another drop or whether we’ve seen it all. However, with the amount of liquidity being added, 6 & 12 months from now prices will be substantially higher.”
BTC registered a drop of 0.36% last Sunday to end the weekend in the red. However, it registered a marginal increase on Monday and then rose over 3% on Tuesday to move past the 20-day SMA and $85,000 and settle at $85,152. BTC raced to an intraday high of $88,624 on Wednesday as markets rallied. However, it lost momentum after reaching this level and fell over 3%, slipping below the 20-day SMA and $85,000 and settling at $82,525. BTC recovered on Thursday, rising almost 1% to $83,199. Buyers retained control on Friday, with the price registering an increase of 0.76% and settling at $83,828.
Source: TradingView
However, price action turned bearish over the weekend as BTC dropped 0.48% on Saturday and settled at $83,423. Bearish sentiment intensified on Sunday as markets tanked. As a result, BTC plunged over 6%, slipping below $80,000 and settling at $78,301. The price encountered significant volatility on Monday as uncertainty about tariffs led to wild price swings. As a result, BTC fell to a low of $74,389 and surged past $80,000 before settling at $79,164. The current session sees BTC down almost 1% as it struggles to push above $80,000 despite a strong recovery. The MACD indicates that bears have the upper hand. As a result, we could see a decline in the short term.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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