Bitcoin and major altcoins are experiencing a notable pullback as renewed trade tensions between the US and EU create a risk-averse atmosphere in the cryptocurrency market. Currently, Bitcoin is attempting to find support around $92,000, but bearish sentiment continues to dominate.
Market analysts have pointed out that the ongoing trade war has resulted in a broader risk-off attitude among investors, which has negatively impacted Bitcoin while traditional safe havens like gold and silver reach new all-time highs. Timothy Peterson, a network economist, suggested that Bitcoin will eventually align with gold”s upward trajectory, albeit through different paths.
Despite a bullish long-term outlook, the short-term scenario appears to be challenging. Trader CrypNuevo highlighted critical support levels to monitor, including the yearly opening for 2026 at approximately $87,000 and the lower range near $80,500. These levels will be pivotal in determining whether Bitcoin and other altcoins can recover.
The S&P 500 Index is also showing signs of weakness, hovering around the 7,000 mark. A decline below the 20-day exponential moving average (EMA) could indicate that profit-taking among bulls is underway. Should this happen, the index might face a deeper correction towards the 6,720 level.
In terms of the US Dollar Index, it rose above the 50-day simple moving average (SMA), but higher price levels are attracting sellers. A drop below these moving averages may keep the index within the 97.74 to 100.54 range. If the price bounces back with strength, it could signal renewed buying interest.
For Bitcoin, the 20-day EMA is currently positioned at $92,625. A strong rebound from this level could indicate positive sentiment, raising the chances of a breakout above $97,924. Conversely, a close below this support could suggest that bulls are losing their grip, leading to a potential range oscillation between $84,000 and $97,924.
Meanwhile, Ethereum remains trapped within a symmetrical triangle pattern, indicating indecision in the market. A close below the 20-day EMA could further prolong this uncertainty, while a breakout above the resistance line would favor bullish momentum.
Other cryptocurrencies, including XRP, BNB, and Solana, are also facing significant resistance levels and potential downside risks. XRP has seen bearish activity after dropping below the 50-day SMA, while BNB and Solana struggle to maintain upward momentum against strong selling pressure.
As the market navigates through these turbulent waters, investors are advised to keep a close watch on vital support and resistance levels, as they will play crucial roles in shaping the near-term direction of these cryptocurrencies.
