Australian Dollar Recovery Signals Potential Support for Bitcoin Below $75K

Approximately 10 weeks ago, CoinDesk highlighted a potential double top bearish reversal pattern in Bitcoin, suggesting a possible sell-off to $75,000.

On Monday, Bitcoin's price fell below this level amid rising trade tensions, impacting financial markets significantly, with Dow Jones Industrial Average futures dropping by 900 points. Technical analysis implies that the BTC sell-off may stabilize between $70,000 and $75,000.

The Australian dollar (AUD), sensitive to global trade issues, has shown signs of recovery, reaching 0.6011 after a drop to 0.5930 earlier. This recovery follows a significant decline over the past week, where the AUD fell over 4% against the USD.

As trade tensions escalate, affected currencies often react swiftly due to anticipated shifts in trade balances and economic conditions. The AUD serves as a proxy for China, Australia's major trading partner, and its recovery may indicate the peak impact of tariff-related sell-offs.

Investors should note that attempting to purchase assets in a declining market carries substantial risk.