- Bitcoin (BTC) drops below $89K amid Bybit hack, ETF outflows, and market uncertainty.
- Trump’s tariffs on Canada and Mexico add pressure to global markets.
Bitcoin (BTC) fell to $86,008.23 before recovering slightly. It is now trading at $88,763.49, down 0.15% in the last 24 hours. The market cap stands at $1.76 trillion, with a 24-hour trading volume of $81.23 billion, pushing the market cap ratio to 4.75%.
BTC is facing immediate resistance at $90,000, with stronger resistance near $92,500. On the downside, support sits at $86,000, with a critical level at $84,500. A break below $84,500 could send BTC toward $80,000, while reclaiming $90,000 could fuel a push to $95,000.
The Relative Strength Index (RSI) is at 28.98, indicating oversold conditions. The RSI average at 30.20 suggests weak momentum for recovery unless buying pressure increases. The Chaikin Money Flow (CMF) is at -0.03, signaling weak capital inflows. BTC remains below key moving averages, reinforcing the bearish trend.
Bybit Hack and Tariffs Weigh on Market Sentiment
Bitcoin’s decline follows the $1.5 billion Bybit hack, which has shaken investor confidence. The incident raises concerns over security risks in centralized exchanges.
Additionally, Donald Trump’s new 25% tariffs on Canada and Mexico, including a 10% tax on Canadian energy exports, have impacted global markets. The uncertainty has led to capital outflows from risk assets, affecting BTC.
Bitcoin ETFs have registered $937.9 million in outflows, marking the largest ever outflows. The broader crypto market is also struggling, with Ethereum (ETH) and altcoins like Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) losing over 20%.
Despite the downturn, GameStop is considering BTC as a reserve asset, and states like Ohio and Oklahoma are pushing legislation to allocate public funds into Bitcoin. Public companies acquired 20,569 BTC last week, raising total holdings to 656,762 BTC. Institutional interest remains strong despite short-term volatility.
Bitcoin’s oversold RSI suggests a potential short-term bounce if buying pressure returns. However, weak CMF and moving averages point to continued caution. A sustained move above $90,000 could trigger a relief rally, but failure to hold $86,000 may lead to further downside toward $84,500 and possibly $80,000.
