The cryptocurrency market is experiencing a pullback, with the market capitalization dropping 4% to $3.3 trillion amid growing concerns about tariffs and global trade. Bitcoin, in particular, has seen a 3% decline, hovering around $103,477 after testing support slightly above $100,000.
*Key Factors Contributing to the Pullback:*
- *Recession Fears*: The feud between US President Donald Trump and Elon Musk has triggered concerns about potential tariffs and their impact on global trade, leading to recession fears.
- *Profit-Taking*: Bitcoin holders have reached a three-month high in profit-taking activity, contributing to the correction in BTC prices.
- *Market Sentiment*: The cryptocurrency market remains lethargic amid uncertainty surrounding US tariffs and recession fears.
*Coin-Specific Updates:*
- *Bitcoin*: BTC has found support slightly above $100,000 and is attempting to rebound. A break above $105,000 could test higher resistance levels at $110,000 and the all-time high of $111,980.
- *Ethereum*: ETH has broken below the 200-day EMA at $2,460 and is attempting to reclaim this dynamic support. A bounce above this level could lead to a rise towards the range's upper ceiling near $2,700.
- *Ripple's XRP*: XRP is holding above the 200-day EMA near the $2 psychological support and is attempting to reclaim the lost $2.13 level.
*Trading Strategies:*
- *Buying the Dip*: Traders can consider buying during pullbacks, but careful analysis is necessary to distinguish between a temporary pullback and a full-blown reversal.
- *Scaling In*: Gradually entering positions during pullbacks can help average out entry prices and mitigate risks.
- *Risk Management*: Setting stop-loss orders and using limit orders can help protect against further downside risks ¹ ².
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