The Bitcoin market suffered a serious crash on Friday after US President Donald Trump confirmed his intention to impose 100% tariffs on Chinese goods. The expected order, which followed an initial export tax order from the Asian superpower, shook financial markets around the world, leading to total crypto liquidations of $19 billion.
However, the market has stabilized over the past few hours and Bitcoin prices are now consolidating around $111,000. As investors wait for the next price move, a prominent analyst with the username X PlanD shared two important conditions for the next bullish wave.
2 Important Bitcoin Levels to Watch – Analyst
In a recent X article published on Saturday, PlanD shares an updated technical analysis of the Bitcoin market following recent market volatility. The analyst explains that Friday’s macro-induced crash led to a larger-than-expected market correction, pulling prices to around $109,600. Notably, this region, which constitutes the lower boundary of a symmetrical triangle on the daily chart, acted as effective price support, confirming the technical bottom of the price fall.
Importantly, PlanD notes that the recent price drop does not signify a break in Bitcoin’s broader uptrend, but rather serves to eliminate the altcoin’s excessive leverage in the futures market. In addition to the symmetrical triangle pattern, the Bitcoin chart also features a bull flag pattern, both of which are bullish formations that remain valid.
With the elimination of excessive leverage and the normalization of funding rates, Bitcoin could regain stability and attract buying interest that could launch a new rally. However, the crypto analyst explains that a key condition for maintaining this bullish structure is that Bitcoin bulls must keep the price above the psychological support level of $109,600.
Subsequently, the leading cryptocurrency is also expected to reclaim a key resistance zone between $115,900 and $117,000, strengthening its bullish intent and the viability of both bullish formations. In this case, PlanD advises Bitcoin to reach the symmetrical triangle price target at $134,000 and the bull flag target at $160,000, respectively, representing a potential price gain of 21% to 45%.
Bitcoin Price Overview
At the time of writing, Bitcoin is trading at $111,700 after a 0.31% price drop over the past day, following the recent flash crash. At the same time, the asset’s daily trading volume is down 49.75% and is valued at $88.74 billion.
PlanD supports Bitcoin’s long-term upside potential, having described the macro-induced crash as a “precursor” to a major price surge, as seen in March 2020. With a market capitalization of $2.21 trillion, Bitcoin maintains its rank as the largest cryptocurrency with a market dominance of 58.2%.
