- Titan warns that Bitcoin could drop below $60K if key levels fail to hold.
- Trump’s tariffs increase the downward pressure on Bitcoin’s price outlook.
- The Bitcoin options market signals rising fear as puts trade at a premium.
A top market analyst, ‘Titan of Crypto,’ has expressed concerns about the direction in which he anticipates Bitcoin’s price might take. In an X post, he warned that if Bitcoin cannot hold key support at $81,872, it could dip below $60,000.
The analyst added that while Bitcoin needs to be above the 50-week EMA, it also needs to keep its weekly Relative Strength Index (RSI) above critical levels. Without these conditions in place, the cryptocurrency could be headed toward a more extensive price correction.
According to Titan, a breach of these support levels would send Bitcoin dropping as low as $58,500. As a result, the market has kept a close eye on these support levels as Bitcoin’s fate remains unknown, and this prediction comes at such a time.
Trump’s Tariffs and Bitcoin’s Struggle
Titan’s bearish outlook is largely due to recent global economic developments, most notable being U.S. President Donald Trump’s announcement about reciprocal tariffs. This move has already affected Bitcoin’s price, which hit the $88,000 range before dipping back below $80,000.
Trump’s policy of levying tariffs on all countries might wreak havoc on global trade and economic stability. A prolonged conflict could exert even more downward pressure on Bitcoin as trade tensions escalate.
These macroeconomic factors will likely continue to affect Bitcoin’s price, and analysts are worried about that. Given the continued uncertainty in the global market, Bitcoin’s fall back to its lower price levels might not be the last.
Bitcoin’s Options Market Signals Rising Fear as Puts Trade at a Premium
According to on-chain data, Bitcoin’s options market looks fearful, as the puts are trading at a premium to the calls. In a tweet, Glassnode called this a trend of increased demand for downside protection. Besides, in the 25 Delta Skew chart, which shows the terms spread of the options market, many spikes are noticed, especially in the short term.
This kind of fear has not been seen since mid–2023, when Bitcoin’s low price was in the $20,000 range. Moreover, the chart reveals a correlation between Bitcoin’s price movement and the increased premium of puts.
Such spikes have occurred during times of heightened market volatility and uncertainty. With Bitcoin trading in excess of $60,000, this increase in demand for downside protection indicates that traders are hedging for a price drop. As the tweet points out, these users have seen an even larger spike in demand for puts on near-term contracts. As Bitcoin’s price remains above $60,000, the market is increasingly pricing for a downside correction.
