Bitcoin, Altcoins Collapse As Trade War Fear Hits Markets

Key points:

Bitcoin has pulled below $116,000, but select analysts expect buyers to step in at lower levels and arrest the decline.

Select altcoins have reached critical support levels where the buyers are expected to mount a strong defense.

Bitcoin (BTC) attempted a recovery on Friday, but higher levels attracted selling. That has pulled the price under $116,000 as short-term traders are rushing to the exit.

Analyst Stockmoney Lizards said in an X post that BTC is witnessing a shakeout in both directions. Despite the correction, the analyst remains bullish, expecting BTC to find support around $118,000 to $119,000.

Crypto market data daily view. Source: Coin360

Trader Peter Brandt told Cointelegraph that “BTC could hit a bull market high any day now,” if it follows its historical cycle pattern. However, he added that cycles could change, and there is a 50/50 possibility of that happening. In case of counter-cyclicality, Brandt expects BTC to rally to as high as $185,000.

What are the critical support and resistance levels to watch out for in BTC and the major altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

BTC has pulled back under the 20-day exponential moving average (EMA) ($118,807), which is a vital near-term support for the bulls to defend.

BTC/USDT daily chart. Source: Cointelegraph/TradingView

If the price rebounds off the 20-day EMA with force, the bulls will attempt to push the BTC/USDT pair to the all-time high of $126,199. A break above the resistance could clear the path for a rally toward $141,948.

On the contrary, a close below the 20-day EMA suggests that the bulls are losing their grip. The pair could then slump to the 50-day simple moving average (SMA) ($114,571). That indicates the Bitcoin price could extend its stay inside the $107,000 to $126,199 range for a while longer. Sellers will seize control on a close below $107,000.