Bitcoin (BTC) Price Holds $80K After Sharp Correction: Key Resistance Ahead

Yesterday, Bitcoin and the broader crypto market experienced a sharp bounce from recent lows after US President Donald Trump announced a 90-day pause

U.S. President Donald Trump announced on Tuesday a 90-day pause on reciprocal tariffs for all countries except China, which remains under a steep 125% tariff. The move brought temporary relief to global markets and sparked a sharp bounce in Bitcoin and the broader crypto market from recent lows.

The news brought temporary relief to global markets, setting the stage for a wave of buying across risk assets as equities also surged despite ongoing geopolitical tensions and fears of prolonged trade wars.

After losing over 30% of its value when it dropped below $75,000 earlier this week, the world’s leading cryptocurrency showed surprising strength in the face of continued macroeconomic uncertainty. As President Trump announced a 90-day pause on reciprocal tariffs for all countries except China, the cryptocurrency surged.

The move brought temporary relief to global markets after a period of heightened volatility and pessimism, setting the stage for a wave of buying across risk assets. As equities also surged despite ongoing geopolitical tensions and fears of a global recession, Bitcoin followed suit.

The world’s leading cryptocurrency had been battered in recent months by a perfect storm of macroeconomic headwinds, including the escalating US-China trade war, which threatened to derail the global economy.

As the dust settles on the first half of 2024, macroeconomic uncertainty remains high, and financial markets are still navigating choppy waters. Sharp price swings have become the norm across all financial sectors as investors quickly react to any news that could affect the course of the global recovery.

Despite this volatility, the world’s largest cryptocurrency has shown remarkable resilience, bouncing back quickly from recent lows.

Even at this week’s lowest levels, over 85% of Bitcoin holders remained in profit, according to data from blockchain analytics firm IntoTheBlock. This finding highlights the strength of long-term holders and investor conviction in Bitcoin’s long-term value, even as the asset trades nearly 30% below its all-time high.

The combination of strong on-chain fundamentals and macro-driven volatility suggests Bitcoin may be entering a new consolidation phase. While risks remain, especially if broader market instability persists, Bitcoin’s ability to hold key levels and bounce on relief news underscores its growing role as a resilient asset in times of uncertainty.

Bitcoin Key Levels To Watch

After losing over 30% of its value when it dropped below $75,000 earlier this week, Bitcoin has shown surprising strength in the face of continued macroeconomic uncertainty.

The recent bounce above the $80,000 mark has renewed hope among bulls, suggesting that the worst phase of the correction may be over. However, global tensions, US tariffs, and fears of an impending global recession continue to cast a shadow over financial markets.

President Trump’s announcement of a 90-day pause on reciprocal tariffs for all countries except China brought some relief, triggering a rebound across both equities and crypto.

But this relief might be temporary. A broader trade agreement with China is still needed to improve market sentiment and reduce risk levels.

Bitcoin is now facing a critical resistance zone around $88,700 on the daily chart. Reclaiming this level would likely confirm a more sustained recovery and could spark renewed bullish momentum.

Despite recent volatility, Bitcoin’s fundamentals remain strong. As seen on the chart above from IntoTheBlock’s In/Out of the Money chart, even during this week’s lows, over 85% of Bitcoin holders remained in profit.

This finding highlights the asset’s resilience and long-term holder confidence, suggesting that BTC may be better positioned to weather macroeconomic storms than in previous cycles.

BTC Price Technical Analysis

Bitcoin is trading at $81,600 after a sharp bullish surge on Tuesday, reclaiming the psychological $80K level that has acted as critical support-turned-resistance throughout the recent correction.

Holding above $80K is now essential for bulls to build momentum and attempt a broader recovery, but resistance is mounting just overhead.

The 4-hour 200-day moving average (MA) around $83,500 has emerged as a key level. BTC stalled at this technical barrier after its bounce, and bulls must break above it to confirm a short-term reversal.

Since Bitcoin fell below the $100K milestone, this moving average has consistently rejected upward moves, signaling that sentiment remains cautious.

If bulls succeed in pushing above $83.5K with conviction, it would signal growing strength and open the door for a retest of the $87K-$88K zone. However, failure to break through—and especially a drop back below $80K—would likely trigger renewed panic selling.

That could invalidate the bullish structure forming now and lead to a continuation of the broader downtrend that began in March. All eyes are now on whether BTC can flip $83.5