As anticipated, Bitcoin reversed direction following the opening of US markets and began to decline. This reaction is not surprising, as BTC has been pricing in the latest reports. With closing levels below $80,400 amid a wave of negative news, Bitcoin faces the risk of deeper lows. Today, we look at how analysts are weighing in on the situation not just for Bitcoin, but for key altcoins as well.
Factors behind Bitcoin’s decline
Sherpa, a prominent analyst, shared a chart while stating he cannot fully explain the continued negative sentiment. Inflation remains persistent, while employment figures have barely held steady, increasing the possibility of interest rate hikes. Even if Warsh receives Senate approval today, as long as current conditions persist, calls to cut rates—no matter how vocal from Trump—appear unrealistic. Any attempt could reignite debates over the Federal Reserve’s independence, just as happened when Trump threatened to replace Fed officials who did not listen to him last year.
Looking at BTC over shorter timeframes right now, the price seems to be under some short-term pressure. I’m not exactly sure why it’s been declining so gradually, but I always monitor this region (the 200-day EMA). If this downward trend continues, I’m watching the 200-day EMA on the 4-hour chart, around $76,000.
This was the justification from the macroeconomic side. On the geopolitical front, the protracted standoff with Iran is also weighing on prices. According to a source familiar with the talks, the Iranian negotiating team has received strict instructions: five demands must be met before nuclear discussions can even start. Iran will not enter nuclear negotiations without guarantees on the following points.
These requirements are: an end to all hostilities, removal of all sanctions, release of frozen funds, compensation for war-related damages and losses, and recognition of Iran’s sovereignty over the Strait of Hormuz. In other words, no deal is on the horizon.
LINK and NEAR Coin under scrutiny
As discussed earlier, there are many valid reasons for BTC’s decline, which continues to drag down the broader altcoin market. Investors need to be ready for possible downward moves. While cryptocurrencies have sometimes surprised bears with sudden rallies, it remains uncertain how long such trends will last or if we’ll see another swift reversal this time.
Ali Martinez, another analyst, hopes that LINK Coin will confirm its recent breakout from an ascending triangle pattern by holding above $10.08. While his target is $12.42, the coin has retreated to as low as $10.25, and in an environment where BTC cannot reclaim $80,400, the odds for LINK look slim.
Daan Crypto Trades, who has previously disclosed a significant position in NEAR, remains distinctly optimistic about the coin’s future. In his latest analysis, he argued that, given NEAR’s strong breakout in the past, a return to $1.41 is highly unlikely and that the price is aiming for $2 instead.
Since altcoins have recently experienced a major drop, it’s highly likely that markets will see strong upward movement in the coming period. NEAR has already had a strong breakout, and I don’t expect a retest at $1.41. Markets rarely offer perfect entry points; for this coin, upward movement will probably continue toward $2.
With the crypto market currently shaped by macroeconomic fears and geopolitical tensions, both Bitcoin and key altcoins like LINK and NEAR are at critical junctures. Investors are keeping a close eye on technical support levels as overall sentiment remains cautious.
