Bitcoin Bears Eye Critical Support Level as Sharp Selloff Gains Steam

Cryptocurrency

Summary:

Bitcoin’s selloff accelerated on Fed uncertainty and forced liquidations, breaking key support at 85,150. Oversold conditions allow short-term bounces, but failure to reclaim levels risks a deeper drop toward 82,000 or lower.

In the latter half of the week, Bitcoin saw a sharp drop as market sentiment turned more cautious. The selloff was driven mainly by uncertainty around the Federal Reserve and concerns that financial conditions could tighten again.

The decline accelerated because many leveraged traders were forced to close their positions in the derivatives market. As prices fell, liquidations in futures trading triggered further selling, turning an initial reaction to the news into a rapid and deeper correction.

Over the past 24 hours, market attention has shifted away from individual news events and toward overall liquidity conditions. Uncertainty around the Fed’s policy path has led investors to cut exposure to riskier assets.

In such phases, Bitcoin continues to behave more like a high-risk global asset than a safe store of value in the short term. When risk sentiment weakens, volatile assets like Bitcoin tend to be sold first as the market looks for a new balance.

As a result, conditions now appear oversold, which could allow for short-term rebounds. However, a lasting recovery will likely need a fresh trigger to rebuild investor confidence.

Bitcoin Technical Outlook

From a technical perspective, the key break came when prices fell below the 85,150 level, which had held twice earlier and was closely watched. When an important support level breaks on the third test, market psychology usually shifts. That level often stops acting as support and starts acting as resistance.

Because of this, any short-term rebound will first be judged by whether the market can move back above 85,150. As long as prices stay below this level, any rally is likely to be corrective rather than the start of a fresh uptrend.

On the daily chart, momentum indicators still leave room for a short-term bounce. The Stochastic RSI, which had been capped near the 91,000 resistance area, has now moved into oversold territory. That said, a recovery would still need two clear confirmation steps before a more durable rebound can be considered.

Reclaiming and maintaining the $85,150 level in daily closes,

Followed by a break above the $87,000-$91,000 range, which is where the short-term moving averages and intermediate resistance levels are located on the daily chart.

If the market finds a catalyst to support a stronger rebound, Bitcoin reclaiming the 90,000 zone will shift attention to the 94,700 pivot level. A break above this area would signal an exit from the trading range in place since November and would tilt the balance more clearly in favor of buyers.

Bitcoin Bears Eye Critical Support Level as Sharp Selloff Gains Steam_2

Looking at the weekly chart, the broader uptrend in Bitcoin has not fully broken. However, prices are sitting close to an important long term level, which keeps the risk of a deeper correction elevated.

That key level is 82,000, which aligns with the 0.382 Fibonacci level on the weekly chart. In February and March last year, prices briefly dipped below this area, but weekly closes stayed above 82,000. That zone acted as strong demand and was followed by a move to new highs in the months ahead.

The market may again try to form a base around this level in the coming days. If Bitcoin begins to post weekly closes below 82,000 this time, the chances of a larger correction increase and selling pressure could intensify. In that case, the 75,000 to 78,000 range may become the next area to watch. If the downtrend deepens further, the 69,300 level near the 0.5 Fibonacci mark could come into focus as a major support zone.

To summarize;

In the base case, as long as prices stay below 85,150, any rebound is likely to face selling pressure, and the 82,000 level may be tested more often. Ongoing uncertainty in global markets could make it hard for Bitcoin to hold above 80,000. If pressure continues, prices could drift toward the 70,000 area, with 78,000 and 75,000 acting as intermediate support levels.

In a more positive scenario, an improvement in global risk sentiment could help Bitcoin move back above 85,150 and then recover toward 91,000. If the rally extends toward 94,700, it could signal a broader trend reversal that lasts into the middle of the month.

Overall, the recent decline started as investors reduced risk due to uncertainty around the Fed. Forced liquidations of leveraged long positions then made the selloff faster and deeper. On the charts, this showed up as a break below the 85,000 support level, with prices searching for stability at lower levels.

Short-term rebounds are possible because the market looks oversold. However, reclaiming the 90,000 zone is key for a stronger outlook. If that fails, attention will turn to whether the 82,000 level can hold on to weekly closes. A sustained move below that area would open the door to further downside.

Source: investing

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Michael Ross

Daily News

Economic

Political

Data Interpretation

China–U.S. Trade War

Remarks of Officials

The United Kingdom is recalibrating its foreign policy, pivoting toward stronger economic ties with China in a move that signals a broader realignment in global trade. A recent visit to China by UK Prime Minister Keir Starmer—the first by a British leader in eight years—has unlocked several major business deals, even without a formal trade agreement.

UK and China Forge New Economic Path

Facing domestic economic pressures, the Starmer government has framed its engagement with China as a strategic necessity, prioritizing commercial interests to fuel growth. This approach has already yielded significant results.

Key developments from the visit include:

• AstraZeneca's Landmark Investment: The pharmaceutical giant announced a $15 billion investment in China, its largest ever in the country.

• Octopus Energy's Market Entry: The British energy firm confirmed its expansion into the Chinese market.

• Scotch Whisky Tariff Cut: China agreed to halve tariffs on Scotch whisky, providing a major boost to Scottish distillers.

• Visa-Free Travel: British travelers can now enter China without a visa for up to 30 days.

This "business-first" policy allows the UK to pursue economic stability while managing geopolitical complexities. The government maintains that it does not need to choose between its relationships with the United States and China, viewing both as critical for its future prosperity.

Shifting Currents in Global Trade

The UK's pivot comes as other major economies are also reassessing their trade relationships, often in response to actions from the United States.

EU-US Trade Deal Hits a Wall

The European Union has suspended the approval process for its trade deal with the U.S. following escalating tariff threats from President Donald Trump. The U.S. had threatened to impose tariffs on several European nations if it did not gain control over Greenland.

Bernd Lange, chairman of the European Parliament's international trade committee, stated the EU had "no alternative but to suspend work" on the agreement. The deal, intended to cap U.S. tariffs on most EU goods at 15%, is now in jeopardy.

New Partnerships Take Shape

While transatlantic ties face friction, other alliances are strengthening. After nearly two decades of talks, India and the European Union have finalized a major trade agreement, which Prime Minister Narendra Modi described as a "turning point" for bilateral relations.

Meanwhile, Canada is also adjusting its trade policy, signaling a different approach by easing tariffs on Chinese electric vehicles.

The US vs. China: An Economic Showdown

These global trade shifts are occurring against the backdrop of an intense economic rivalry between the world's two largest economies. According to the World Bank, the U.S. and China dominate the global landscape in both nominal GDP and purchasing power parity (PPP).

• Nominal GDP: The U.S. leads with a projected economy of $30,507 billion, compared to China's $19,232 billion.

• Purchasing Power Parity (PPP): China has overtaken the U.S., with its GDP valued at a forecasted $40,716 billion versus the U.S. at $30,507 billion.

While the U.S. maintains a higher per capita income, China's consistently higher growth rates in recent decades have intensified the competition for global economic leadership, encouraging nations like the UK to forge diverse and pragmatic economic partnerships.

To stay updated on all economic events of today, please check out our Economic calendar

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Daniel Carter

Economic

Enacted in July, Trump's legislation added several tax breaks for 2025 and the IRS did not adjust paycheck withholdings. As a result, many workers overpaid taxes and will be refunded when filing 2025 returns, experts say.

In 2026, average tax refunds could increase "by $1,000 or more," the White House said in a release this week. The release cited several media reports that reference early October research from Piper Sandler. That note said Trump's "retroactive tax cuts could average about $1,000 per return though it will be substantially more for some filers."

The White House release also included a graphic with January data from the Tax Foundation, a nonprofit think tank, showing estimated average refunds could be $3,800, up $748 from $3,052 for tax year 2024.

In 2026, $200 billion more will go out for tax refunds, Frank Bisignano, Social Security Administration Commissioner and IRS CEO, told CNBC's "The Exchange" on Wednesday.

The Piper Sandler research from early October estimated 2026 refunds could increase by about $91 billion from Trump's 2025 tax cuts. By comparison, the Tax Foundation's January analysis said 2026 refunds could rise by up to $100 billion, based on private-sector data.

The estimates come as Republicans continue to promote Trump's 2025 legislation — now called the "Working Families Tax Cuts" — and promises that 2026 will be the "largest tax refund season of all time."

Trump has recently floated new economic policy as many Americans struggle with the rising costs of groceries, utilities and other living expenses. Democrats have criticized Trump on affordability as Republicans fight to defend a razor-thin House majority during a midterm election year.

How much higher tax refunds could be in 2026

The Tax Foundation analysis found the average tax refund in 2026 could be $300 to $1,000 higher compared to a typical year, based on past IRS data and private sector estimates, according to Garrett Watson, director of policy analysis at the Tax Foundation.

"But there's a really important caveat here," Watson told CNBC. "This is very much an average. It does conceal a lot of variation between taxpayers."

For example, filers with a lot of tips or overtime income, or certain higher earners, are likely to see "much greater refunds" compared to lower- to middle-class W-2 workers who receive only a "slight bump" from the bigger standard deduction, he said.

For 2025, the standard deduction rose to $15,750 for single filers or $31,500 for married couples filing jointly, up from $15,000 and $30,000, respectively.

By comparison, certain workers can deduct up to $25,000 in tip income or $12,500 in overtime pay in 2025.

Meanwhile, the state and local tax deduction, or SALT, limit increased to $40,000 for 2025, up from $10,000. The SALT deduction includes state and local income taxes and property taxes. Most filers won't be eligible because you must itemize deductions to benefit.

A separate report released this week from the American Enterprise Institute projected that about 60% of filers will see an average tax cut of nearly $1,200 for 2025 returns. This figure refers to reduced taxes for 2025, not the size of filers' refunds.

The percentage of filers who benefit and the average tax cut rise with income, with middle- and high-income filers "likely to receive larger tax cuts" based on the structure of the provisions, authors Kyle Pomerleau and Huaqun Li wrote.

But how tax cuts translate into refunds ultimately "depend significantly on a taxpayer's individual characteristics," and whether they adjusted their paycheck withholdings after Trump's law went into effect, they wrote.

Source: CNBC

To stay updated on all economic events of today, please check out our Economic calendar

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Liam Peterson

Remarks of Officials

Economic

Political

Central Bank

National Economic Council Director Kevin Hassett, once considered a leading candidate for Federal Reserve chair, said Friday he is content in his current role and fully supports President Donald Trump’s decision to nominate former Fed Governor Kevin Warsh for the top job.

Speaking to CNBC, Hassett expressed no disappointment, stating he understands and backs the president's choice.

"I've got my dream job," Hassett said in a "Squawk on the Street" interview. "I think President Trump made a great choice, and I'm really thrilled and humbled by all the kind things he said about me."

A Key Player Staying at the White House

President Trump explained his decision in a Truth Social post, noting that Hassett was too valuable to move from his current position.

"He is doing such an outstanding job working with me and my team at the White House, that I just didn't want to let him go," Trump wrote. "Kevin is indescribably good so, as the expression goes, 'if you can't do better, don't try to fix it!'"

Hassett echoed this sentiment, highlighting the effectiveness of the current economic team, which includes himself, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick. "We've been hitting on all cylinders, and it's a really bad time to change teams," he said. "You don't change quarterbacks when you're way ahead."

He affirmed the administration's commitment to the nominee, adding, "I really have high regard for Kevin, and we're going to put every effort that we have into getting him confirmed as soon as possible, so that we can get the Fed moving in the right direction."

The End of a Lengthy Selection Process

The nomination of Warsh concludes a selection drama that began in the summer of 2025 and followed years of President Trump's criticism of the central bank's policies under current Chair Jerome Powell.

The field of potential successors initially included 11 names. For a period, the race was widely seen as a contest between "the two Kevins"—Warsh and Hassett. At one point, prediction markets even favored BlackRock executive Rick Rieder for the position.

Ongoing Criticism of Fed Interest Rate Policy

The change in leadership aligns with the administration's long-held view that the Federal Reserve has kept interest rates too high. During his CNBC interview, Hassett reiterated this critique, calling the Fed's decision earlier this week to hold its benchmark interest rate steady a "mistake."

Hassett also addressed potential political hurdles for Warsh's nomination. Senator Thom Tills (R-S.C.) repeated a threat on Friday to hold up any Fed nominees while the Justice Department continues its investigation into the renovation of the central bank’s Washington, D.C. headquarters.

Despite this, Hassett projected confidence. "The White House is highly, highly confident that Kevin Warsh is a great nominee and that he should be confirmed as soon as possible," he stated. "Every single resource we have at our disposal is behind him."

If confirmed, Warsh is set to fill the seat of Governor Stephen Miran, whose term ends Saturday. He would then assume the role of Fed chair in May, following the expiration of Jerome Powell's term.

To stay updated on all economic events of today, please check out our Economic calendar

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James Riley

Russia-Ukraine Conflict

Remarks of Officials

The UN's nuclear watchdog held an emergency meeting on Friday to address growing fears over the safety of Ukraine's nuclear facilities, as Russian attacks continue to cripple the country's power grid.

Rafael Grossi, Director General of the International Atomic Energy Agency (IAEA), opened the board meeting by stating that the war in Ukraine "continues to pose the world's biggest threat to nuclear safety." The primary concern is that a loss of electricity supply to nuclear plants could lead to a catastrophic disaster.

UN Watchdog Convenes Emergency Meeting

The four-hour extraordinary session in Vienna was prompted by a letter from 13 countries, led by the Netherlands, expressing "growing concern about the severity and urgency of nuclear safety risks."

Ahead of the meeting, Ukrainian ambassador Yurii Vitrenko emphasized that it was "high time" for the IAEA board to confront the situation. In response, an IAEA expert mission is currently assessing 10 Ukrainian substations and power plants considered "crucial to nuclear safety," with its work expected to conclude next month.

Power Grid Attacks Threaten Nuclear Plant Stability

Since its 2022 invasion, Russia has systematically targeted Ukraine's energy infrastructure. These attacks have repeatedly jeopardized the external power needed by nuclear plants to run essential cooling and security systems, even when their reactors are shut down.

The Zaporizhzhia plant, Europe's largest nuclear facility, has been under Russian occupation since March 2022 and has been a constant source of international alarm. Its six reactors are currently shut down, but the site still requires a stable electricity connection to prevent overheating.

Earlier this month, Russia and Ukraine agreed to a localized ceasefire to permit repairs on the last remaining backup power line to the Zaporizhzhia plant, which had been disconnected by military activity in early January. Last week, the Chernobyl nuclear power plant also temporarily lost all of its off-site power, further highlighting the system's vulnerability.

Russia and Ukraine Clash at IAEA Forum

The diplomatic tensions were evident at the meeting. While Ukraine urged for more decisive action, Russian Ambassador Mikhail Ulyanov dismissed the gathering as "absolutely politically motivated," claiming there was "no real need to hold such a meeting."

Both Moscow and Kyiv have consistently accused each other of risking a nuclear catastrophe by launching attacks near the Zaporizhzhia site.

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Devin

Commodity

Silver Technical Analysis

Silver daily chart.

The silver market initially tried to rally but then fell rather significantly during the early hours here on Friday, even breaking below the $100 level to reach near $95, an area that is round number, and seems to have been attractive for buyers.

We have turned around and recovered since then, but this to me looks a lot like serious problems just waiting to happen. It does make sense, after all; the silver market has been out of control for a while. Sooner or later, you see some type of deep correction or panic move. I have been warning about this for a couple of weeks now, and I suspect there are quite a few retail traders out there who have just blown their accounts.

Position Sizing and Market Volatility

This is the behavior of a market that is out of control. While you can make massive profits rather quickly, you can also get eliminated from the game just as quickly, and this is where position sizing matters.

The question now is whether or not we can stay above the $100 level on Friday at the close. That for me will tell you most of what you need to know about whether or not the correction is over. This is not a market you want to jump into with a huge position with this type of behavior at the moment. Quite frankly, this could be the beginning of something rather ugly. I would wait at this point until after the market closes to get a read on what is really going on.

Source: FX Empire

Risk Warnings and Disclaimers

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Adam

Commodity

FUNDAMENTAL OVERVIEW

The strong bullish momentum seems to have waned for precious metals and silver is getting hit the most given its smaller market compared to gold. It’s not clear what caused yesterday’s drop as pretty much all markets went down at the same time. There were only talks of multiple US warships arriving in the Middle East but given that oil prices dropped too, I wouldn’t bet on that reason.

Overnight, we got reports that Trump was going to announce his Fed chair pick today and everything suggested that it was going to be Kevin Warsh. We got a hawkish reaction across markets as Warsh was a hawk during his last term at the Fed, although the historical stance is never a guarantee.

The narratives underpinning silver in the past several months have been the same as for gold, that is de-dollarisation, geopolitical tensions, and so on. Given the lack of bearish catalysts, the price continued to rise just by inertia. We reached a point where it looks like just FOMO rather than something fundamental because these prices are not justified in the short-term.

Since last week, I’ve been turning more bearish in the short-term as I feel like we are reaching an inflection point and February could be the first major negative month for precious metals if the right conditions fall in place.

The most important catalyst next week could be the US NFP report. We’ve been seeing improvements in the US Jobless Claims data that seem to suggest a pickup in labour market activity. A strong report would trigger a hawkish repricing in interest rate expectations and put pressure on silver.

The other top tier data could also start to weigh on silver if they come out strong, but the NFP report should be the main event of the week. In case we don’t get the bearish catalysts, silver could resume its upside trend.

SILVER TECHNICAL ANALYSIS – DAILY TIMEFRAME

Silver - daily

On the daily chart, we can see silver dropped by more than 20% since yesterday as profit-taking hit the market. From a risk management perspective, the buyers will have a better risk to reward setup around the major trendline to target new record highs. The sellers, on the other hand, will look for a break lower to extend the selloff into the 70.00 level next.

SILVER TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME

Silver - 4 hour

On the 4 hour chart, we can see that the price broke below the trendline that was defining the bullish momentum on this timeframe. This is generally a signal of a loss of momentum and potentially a bigger pullback. The sellers will likely step in around the broken trendline with a defined risk above it to keep pushing into the next trendline. The buyers, on the other hand, will look for a break higher to start piling back in into longs and target new record highs.

SILVER TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME

Silver - 1 hour

On the 1 hour chart, we can see that we have a minor downward trendline defining the current bearish momentum. The sellers will likely lean on the trendline to keep pushing into new lows, while the buyers will look for a break higher to increase the bullish bets into the next downward trendline around the 110.00 level. We can also notice that the price is trading at the lower bound of the average daily range for today. In such instances, we can generally see a consolidation or a pullback before the next move.