Following a recent 90-day tariff halt by the U.S. government, attention has returned to Bitcoin. However, experts caution that it is premature to conclude that conditions in the market have stabilized. Swissblock, a leading analysis firm, points out that despite Bitcoin’s efforts to gain traction, significant risk factors remain. Their caution stems from ambiguous technical indicators and a lack of a robust support system.
Are High-Risk Signals Still Present?
Swissblock’s assessments indicate that a considerable drop in market risk is crucial before Bitcoin can be said to have reached its bottom. The firm utilizes a tool called the “Bitcoin Risk Signal” to analyze risk levels by evaluating price trends, on-chain data, and volume metrics. Presently, while the risk is manageable, it hasn’t decreased sufficiently.
The recent spike in Bitcoin’s price has sparked some optimism; however, a solid technical framework to support this rise is still lacking. Swissblock emphasizes that a decrease in risks and a surge in volume-backed purchases are essential for a more positive outlook. Without these, price increases might be misleading.
What Does the $80,000 Support Level Mean?
For Bitcoin to establish a new upward trajectory, experts assert that it must solidify a support base around $80,000. Swissblock notes that if this level can be sustained and downward pressure is alleviated, a more substantial upward move could occur. Nonetheless, this crucial support is currently under vigilance, and the market’s path remains ambiguous.
- Bitcoin needs to maintain the $80,000 mark for a bullish outlook.
- Technical indicators and volume profiles require close monitoring.
- Short-term positive trends might not signify a long-term shift.
The initial easing effects of the U.S. tariff pause have not established a new foundation for Bitcoin, according to Swissblock. They contend that macroeconomic factors have little influence on market risk reduction, leading to ongoing natural market fluctuations. Currently, Bitcoin remains in a downward phase, and this decline has yet to reach its conclusion. Consequently, investors should be wary of interpreting short-term gains as a definitive trend reversal.
