Bitcoin's pullback is primarily due to profit-taking. However, the threat of secondary trade tariffs on Russia may also have had a negative impact on the price.
President Donald Trump has given Russia 50 days to reach a truce with Ukraine. If they fail to do so, Trump has threatened to impose additional trade tariffs of up to 100% on the country.
The price of Bitcoin (BTC) began to decline immediately after this news broke, but it appears that this drop was largely due to profit-taking.
Let us therefore try to examine the factors that are causing the drop in the price of Bitcoin and the possibilities of further increases during this volatile Crypto Week .
Why is Bitcoin falling today?
Yesterday morning, Monday, July 14, the price of Bitcoin set a new record, surpassing $120,000 , marking an increase of over 12% in a week.
After reaching a new all-time high just above $123,000 , there was a pullback primarily due to profit-taking. However, the threat of secondary trade tariffs on Russia may also have had a negative impact on the price.
In a press conference with Prime Minister Mark Rutte , Trump said he was disappointed in Russian President Putin. He had hoped to reach an agreement two months ago, but now he is giving Russia another 50 days for a ceasefire with Ukraine. If this doesn't happen, Trump threatened to impose secondary trade tariffs of up to 100% on Russia.
Despite ongoing geopolitical uncertainty, Bitcoin's price is still up 7.6% this morning compared to a week ago. We expect further volatility today due to the release of the US Consumer Price Index (CPI) data .
The CPI data provides a snapshot of the state of the US economy and expectations for the Federal Reserve's interest rate decision. The Fed's interest rate decision will be announced in two weeks, on Wednesday, July 30.
Crypto Week could push Bitcoin's price higher further.
The week of July 14th to 18th is a crucial one for the cryptocurrency market. In the United States, it's been dubbed Crypto Week because during this period, the House of Representatives will focus entirely on cryptocurrency regulation.
Depending on the outcome, cryptocurrency regulation in the United States could become even clearer and have a positive impact on digital currency adoption , which could see further growth.
According to analysts, with a positive outcome this week, Bitcoin could rise to a new all-time high of $136,000 .
Bitcoin Price Predictions
Bitcoin 's price is currently falling toward last Thursday's close, around $116,000, a level that could offer support and curb further declines. Given the expected volatility, a breakdown below this level is possible. If so, Bitcoin could decline further toward $112,000.
However, profit-taking appears to have already abated. After the relative strength index (RSI) reached the overbought level of 76 yesterday, selling pressure increased. Now, however, the RSI has dropped below 70 again, giving Bitcoin enough room for a further surge.
If Bitcoin manages to break above the psychological level of $120,000 and the all-time high of $123,000 again, then a further increase towards $ 125,000 and $130,000 could occur.
This could happen as early as this week, depending on the outcome of Crypto Week and the behavior of institutional investors.
It's certainly not impossible that Bitcoin will enter a new period of consolidation, but in the long term, this cryptocurrency appears unstoppable.
Expectations are positive: Bitcoin should continue to rise and gradually attract the attention of retail investors. At that point, the increases, but also profit-taking, could become even more extreme.
Once the mass of retail investors realize their profits on Bitcoin, a typical rotation of this liquidity will occur into major altcoins like Ethereum, XRP, and Solana. The profits from these altcoins will then flow into smaller altcoins, and before investors know it, we'll have another altcoin season.
Large altcoins may generate large profits early, but smaller altcoins that are picked up later could explode in value during that time. An investment in emerging cryptocurrencies could therefore generate huge profits when altcoins begin to rise.
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