Bitcoin’s Plunge: Is the $70,000 Abyss Inevitable or Just a Dramatic Misstep?

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Ah, the relentless tide of Bitcoin (BTC) continues its descent, much like a weary traveler stumbling down a steep hill, clutching at the last vestiges of hope. Is it truly a foregone conclusion that we shall witness the price plummet into the low $70,000s, or might there still flicker a glimmer of optimism for the beleaguered Bitcoin bulls? 🐂

In this tumultuous landscape, where the specter of Trump’s tariffs looms large, and the aftermath of the President’s White House Crypto Summit leaves many disillusioned, the crypto market finds itself in a state of disarray. It seems as though the Bitcoin price is on a collision course with the formidable support level around $70,000, or perhaps even lower. One can only chuckle at the irony of it all! 😂

U.S. Stock Market: A Tightrope Walk Above the Abyss

Of paramount significance to Bitcoin’s fate is the precarious state of the U.S. stock market. The daily chart reveals a disheartening truth: the price has slipped from its channel, reminiscent of a clumsy dancer losing their footing. Historically, such slips have been followed by a valiant resurgence from the bulls, yet the last such occurrence, back in the balmy days of early August 2024, was during the unwinding of the yen-backed carry trade. Ah, the memories! 🌪️

In a twist of fate, the percentage drop inspired by the Trump tariffs has now eclipsed even the infamous Japanese stock market crash. The 200-day SMA has been breached, marking a first since the autumn of 2023. The closing candle on Friday clung to the 200-day SMA like a lifebuoy, but the opening on Monday will be crucial. Should this stock market calamity persist, the outlook for Bitcoin could darken further. 😱

Bitcoin: A Triangle Pattern Gone Awry

Alas, the daily chart for $BTC paints a rather grim picture. The price has rolled over from its lofty peak of $109,000, and on Sunday, it decisively tumbled out of the triangle pattern. With a closing price of $80,700, Monday has offered a mere flicker of a bounce. One might even speculate a return to the triangle breakdown at around $86,000, but alas, it would face formidable resistance. Such is the cruel jest of fate! 🎭

The Stochastic RSI, lurking at the bottom of the chart, hints at a potential fake-out, as the indicators seem poised to dip below the trendline. Whether this will be confirmed by the end of Monday remains to be seen, much like waiting for a punchline that never arrives. 🤔

Bitcoin: Drawn Back to Major Support?

The weekly chart, too, offers little solace. The once-majestic hammer candle from two weeks past, which had propelled the price above the major ascending trendline, now teeters on the brink of cancellation by recent losses. The gravitational pull of major support appears to be drawing the price back, but would such a descent spell doom? Not at all! It could merely serve as a final affirmation of this crucial support before the price embarks on a journey back to the heights of a bull market. 🐻

Yet, amidst this tempest, a flicker of hope emerges in the form of a crossover between the blue (fast) indicator line and the red (slow) indicator line in the weekly Stochastic RSI. Though it may be early days, and the lines may meander at the bottom for a spell, they shall eventually rise again, and with them, the price may follow suit. Could this herald a new all-time high for Bitcoin? Only time will tell! ⏳

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2025-03-10 14:04