BTC/USD Forex Signal 04/02: Bitcoin Price Crash (Chart)

(MENAFN- Daily Forex) Bearish view

• Sell the BTC/USD pair and set a take-profit at 70,000.
• Add a stop-loss at 80,000.
• Timeline:1-2 days.

Bullish view

• Buy the BTC/USD pair and set a take-profit 80,000.
• Set a take-profit at 70,000.

Bitcoin price continued its recent downward trend, reaching its lowest level in over a year and erasing all the gains made during the Donald Trump administration. The BTC/USD pair crashed to 73,000, down sharply from the all-time high of 126,300.

Bitcoin's crash coincided with the performance of stock market as the Dow Jones and other top indices like the S&P 500 and the Nasdaq 100 indices fell by over 1%. The Nasdaq 100 Index, which tracks the biggest technology companies in the United States, dropped by over 2%.

This sell-off as investors remained concerned that the United States and Iran will have a major conflict. This explains why crude oil prices rebounded, with Brent, the global benchmark, rose by over 1% to over $67.

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Bitcoin has proven that it is not a safe haven asset as its price often drops when major risks emerge. A good example of this is what happened when Donald Trump announced his reciprocal tariffs in April last year.

The BTC/USD pair has also crashed as many investors have remained on the sidelines as they wait for better entry points. Also, data shows that liquidations continued rising in the last 24 hours, while long-term holders have dumped millions of tokens in the past few months.

EURUSD Chart by TradingViewBTC/USD Technical Analysis

The daily timeframe chart shows that the BTC price has been in a strong downward trend in the past few months. It made a strong bearish breakdown recently when it crashed below the lower side of the bearish flag pattern.

The coin has remained below the oversold level of 30. At the same time, the Relative Strength Index (RSI) and other oscillators have moved to the oversold level.

It also moved below the key support level at 80,485, its lowest level in November last year. The coin also dropped below the key support level at 74,500, its lowest level in April last year.

Therefore, the most likely scenario is where the BTC/USD pair continues falling as sellers target the next key support level at 70,000.

On the positive side, the coin has become highly oversold, meaning that it may have a relief rally in the coming weeks.

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