Bitcoin (BTC) revisited $80,000 on Friday after US-Iran war nerves sparked 3% daily losses.
Key points:
- Bitcoin bullish momentum slowly returns after a shakeout amid familiar geopolitical tensions.
- Traders flag support levels in the mid- to high-$70,000 zone as important for bulls to defend.
- Unprecedented Bollinger Bands data calls for more volatile conditions going forward.
Bitcoin retests $80,000 after sell-off
Data from TradingView showed BTC price downside pressure easing toward the Wall Street open.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Thursday had seen risk assets lose out amid rumors of the US restarting its “Project Freedom” campaign against Iran, while military strikes from both sides placed a fragile ceasefire in jeopardy. The S&P 500 came off new all-time highs.
S&P 500 one-hour chart. Source: Cointelegraph/TradingView
Commenting, crypto trader Michaël van de Poppe said that the retracement was no “surprise” given recent brisk gains.
“Assets trend in waves. Bitcoin has seen multiple days of momentum upwards, so it’s not strange to expect it to consolidate just now,” he wrote in an X post at the time.
BTC/USDT one-day chart. Source: Michaël van de Poppe/X
Van de Poppe subsequently described Bitcoin as “doing just fine,” but said $76,000 needed to hold as support.
“The first rally out of a bear market lands at that resistance, and it would give some more momentum for Altcoins,” he added.
Trader Jelle also remained optimistic on the outlook while arguing that the day’s lows near $79,000 needed to hold.
“Even in the bearish case, I believe the turquoise zone will hold the price and trigger a reversal to the upside,” he told X followers about charts showing $74,500 as a potential downside target.
BTC/USDT charts. Source: Jelle/X
Bitcoin volatility metric demands larger moves
On daily time frames, BTC/USD thus failed to sustain a break beyond the upper band of the Bollinger Bands volatility metric.
Related: Bitcoin can crash to $50K if ‘most critical’ bear market test fails: Analysis
BTC/USD one-day chart with Bollinger Bands data. Source: Cointelegraph/TradingView
As Cointelegraph reported, positive signals from the Bands even inspired their creator, John Bollinger, to take a position via his proprietary investment funds.
In an X response, trader SuperBro observed the narrowest-ever conditions for the Bands on monthly time frames — a key prerequisite for heightened volatility next.
BTC/USD one-month chart with Bollinger Bands data. Source: Cointelegraph/TradingView
Source: https://cointelegraph.com/markets/bitcoin-eyes-80k-reclaim-traders-say-these-btc-price-support-levels-must-hold?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
