Bitcoin Technical Rejection at Resistance Levels
The cryptocurrency market has entered a phase of heightened volatility, with Bitcoin taking center stage amid global economic uncertainties. After reaching a peak of $112,000 earlier in the day, Bitcoin faced a strong resistance level at $111,500 — a zone many analysts had anticipated as a rejection point.
The market responded accordingly, with Bitcoin retracing to a low of $106,800, sparking concerns among investors. While many bullish traders had predicted a surge to $120,000 or higher, technical indicators painted a more cautious picture. The price pattern, forming a rising wedge, hinted at an imminent correction, and the market delivered with a potential drop projected towards the $99,000 level — representing a 10–11% correction from recent highs.
Despite the correction, historical data and technical analysis suggest that the previous all-time high (ATH) could serve as a robust support level, possibly setting the stage for a quick recovery. Experts believe that if Bitcoin touches the $99,000 mark, it could rebound to retest the $106,000 level, reaffirming the ATH support.
Macroeconomic Shock: Trump's Tariff Announcement
A significant external factor influencing the current crypto downturn was a statement by former U.S. President Donald Trump. In a recent announcement, Trump proposed a 50% tariff on the European Union starting June 1, 2025. This declaration triggered a ripple effect across financial markets, intensifying fears of a renewed trade war.
The timing of this announcement coincided with Bitcoin reaching the top of the rising wedge formation, amplifying the impact of the technical resistance. Trump justified the tariffs as job creators for Americans, asserting they would benefit the domestic economy rather than harm it. Nonetheless, the broader market interpreted the statement as a negative catalyst, sparking immediate sell-offs in both traditional and crypto assets.
SUI (Sui) Faces Technical Weakness Amid Hack Fallout
While Bitcoin grapples with macroeconomic headlines, SUI — a rising Layer-1 blockchain project — faces its own set of challenges. The protocol was recently rocked by a major hack involving Satus, a decentralized app built on the SUI network. The hack has led to a significant dip in investor confidence and introduced bearish pressure on the token's price.
Even though some early investors had already exited their positions post-vesting, the incident has rattled the broader SUI community. The token now trades lower not only in comparison to its bullish peers like Solana but also lags behind relatively stable assets like XRP.
Technically, SUI is in a fragile state. The fundamentals are shaky, and sentiment remains weak in the wake of the hack. Whales and large holders, while not panicked, are monitoring the situation closely, and many are opting to stay on the sidelines until confidence is restored.
Conclusion: What Lies Ahead
Both Bitcoin and SUI are navigating rough waters — albeit for different reasons. Bitcoin’s correction appears to be a healthy response to technical overextension and macroeconomic fears, while SUI’s challenges are more rooted in protocol-specific issues and security concerns.
Investors are advised to stay vigilant, monitor charts closely, and keep an eye on global developments, especially those involving trade policies and regulatory changes. While the dip may offer strategic entry points, caution and informed decision-making remain key in the current market landscape.