Bitcoin falls as tech-stock rout stokes risk-off mood, what's next?

A sharp selloff in equities drove a wave of risk aversion that sent Bitcoin sharply lower on Thursday.

The market appears to have recognized that a Democratic sweep is unfavorable due to greater fiscal restraint, stricter regulation, and constraints on AI infrastructure.

Furthermore, a Democratic Congress does not restrict Trump's ability to impose tariffs or sustain the conflict with Iran. Overall, this is seen as a net negative for growth prospects and risk appetite, barring an end to the US-Iran war.

Going forward, attention stays on US-Iran events and the Federal Reserve. A diplomatic breakthrough would boost Bitcoin by enhancing the growth outlook and risk sentiment. Escalation, however, would probably spark another selloff due to rising growth worries and safe-haven demand.

BITCOIN TECHNICAL ANALYSIS – DAILY TIMEFRAME

Bitcoin sank yesterday during the tech stock rout, creating a fakeout. The decline stalled near the key 75,000 level as buyers stepped in, with a defined risk below that level, aiming for a rally to 98,000. Sellers want a break below 75,000 to add to bearish positions and target the major upward trendline around 72,000.

BITCOIN TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME

Yesterday's selloff and the bounce near 75,000 are more evident on the four-hour chart. There is little additional insight from this timeframe: buyers keep accumulating around 75,000 and add bullish bets on a break above the downward trendline, while sellers await a break below 75,000 to push the decline toward the major upward trendline.

BITCOIN TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME

The swing high near 77,000 may provide minor resistance on the one-hour chart. Buyers want a break above that level to add bullish bets targeting new highs, while sellers could use it as a resistance point with a defined risk above, aiming for a break below 75,000.

UPCOMING CATALYSTS

The week concludes today with the US NFP report and the University of Michigan Consumer Sentiment survey.