Bitcoin Tests Key Support Below $75K as Australian Dollar Bounce Offers a Glimmer of Relief

Bitcoin (BTC) slipped below the critical $75,000 threshold on Monday, testing support levels highlighted months ago by technical analysts, even as the Australian dollar—a key gauge of global risk sentiment—showed early signs of recovery.

BTC’s decline comes amid mounting fears of a prolonged trade war, with U.S. stock futures plunging and the Dow Jones Industrial Average pointing to a 900-point drop at the open. The drop aligns with a bearish double-top pattern spotted back in January, which projected downside potential toward the $70K–$75K region during a broader bull market correction.

Amid the chaos, traders are watching the Australian dollar (AUD) closely. Often seen as a bellwether for global economic confidence due to Australia’s trade ties with China, the AUD has clawed back nearly 100 pips from its overnight low. After bottoming at 0.5930 in Asia hours, AUD/USD rebounded to 0.6011—a promising sign for risk assets.

The AUD’s sharp recovery could hint at early signs of exhaustion in the risk-off move sparked by President Trump’s sweeping tariffs, which have roiled markets from equities to commodities to crypto.

Historically, the AUD responds rapidly to shifts in global trade sentiment. As a commodity-heavy currency closely tied to Chinese demand, its price swings often mirror investor expectations about global growth and trade flows.

Still, bottom-hunting in this environment remains fraught with risk. “Catching a falling knife” is how some traders describe buying into sharp sell-offs, and without confirmation of a reversal, Bitcoin’s dip could have further to go.

Yet if the AUD’s bounce proves sustainable, it could offer crypto bulls a glimmer of hope that the worst of the macro-driven pain may soon be over.