Bitcoin Crashes as Trump Crypto Summit Speech Fails to Dazzle – Is BTC Going to $80K Again?

Trading volumes were already climbing ahead of Trump’s intervention as market participants positioned themselves to capitalize on any unexpected announcements concerning the industry.

Data from CoinMarketCap indicates that trading volumes have gone up by 48% in the past day to $37.2 billion.

Meanwhile, $315 million worth of crypto trading positions – half shorts, half longs – have been liquidated in the past 24 hours as the market started to behave erratically after the FOMC meeting yesterday and ahead of Trump’s speech today.

In a short speech that lasted just 2 minutes, the President addressed what his administration has done so far to support the blockchain sector’s growth and what the Biden administration did wrong.

No new announcements were made but Trump once again emphasized his goal of turning America into the “crypto capital of the world.”

Bitcoin Has Stood Above $80K for Six Days in a Row

Bitcoin has been recovering in the past couple of weeks after it bounced for a second time from the $78,000 level. Bulls have managed to keep BTC above the $80K level for six days now but today’s sell-off seems strong enough to challenge that streak.

Despite BTC’s recent uptrend, the downtrend prevails unless the top crypto can move above the $95,000 level at least. Any significant drop before the price gets to that level would be interpreted by market participants as a signal that the downtrend will continue.

Market sentiment has improved slightly. The Fear and Greed index moved from a record-low of 17 to 31 today, meaning that investors are now in fear instead of “extreme panic.”

The Federal Reserve yesterday opted to keep rates unchanged as expected and the central bank’s Chairman, Jerome Powell, confirmed that two more interest rate cuts are scheduled to take place this year.

Although nothing has changed, certainty is always welcomed by market participants, especially during market downturns.

Momentum indicators are still favoring a bullish outlook for BTC in the daily chart as the Relative Strength Index (RSI) is still above the signal line while the MACD’s histogram shows steadily rising positive momentum readings.

Moving forward, the $80,000 level seems relevant to market participants and has not yet been retested in a while. If today’s drop accelerates or spills over to the weekend, this could be BTC’s next contested zone in the near term.

BTC Could Drop to $81K if It Losses This Support

The hourly price action shows that BTC is already a key support area at $83,600 that could cushion the downtrend. As the daily chart is still bullish, traders should be careful not to take oversized.

However, every technical indicator in this lower timeframe is pointing to a bearish outlook. First, the Relative Strength Index (RSI) currently stands at 31% below the signal line and has already retested it two times – meaning that the downtrend has legs.

In addition, the MACD shows steadily increasing negative momentum readings. The odds favor a drop below this support level during the American session. A short position here if the price breaks below the $83,000 level would offer an attractive risk-reward ratio of 1.7 and even higher depending on where the stop price is set.

If that break occurs, BTC could drop to the $81,000 level as no relevant support stands in the way.

Can it break through that barrier and touch the $80K mark again? It is still too early to tell but negative momentum seems to be accelerating and a retest of this key level is certainly possible now that the Fed meeting is in the rearview mirror.