The price of Bitcoin has stabilized below the $116,000 barrier this week, indicating market uncertainty.
The massive tariffs imposed by Trump are now in effect, and additional trade statements may lead to volatility.
Bitcoin (BTC) has been trading steadily below $116,000 this week, reflecting traders' caution amid macroeconomic uncertainty. The retaliatory tariffs imposed by U.S. President Donald Trump are already in effect.
The retaliatory tariffs imposed by U.S. President Donald Trump began on Thursday. Bitcoin prices have fluctuated between $113,000 and $116,000 this week, indicating market uncertainty and awaiting a catalyst.
The K33 research report indicates that Bitcoin's 30-day volatility is at its lowest level in a year, at 1.33%, and the seven-day volatility is at 1.2% after hitting a two-year low of 0.76% on July 30, the lowest since September 2023.
Additionally, a recent $58 billion U.S. government debt auction witnessed a decline in foreign demand to its lowest level in a year, forcing local banks and investors to absorb the surplus. If this trend continues, the Federal Reserve may face pressure to resume money printing, which could enhance Bitcoin's appeal as a hedge.
Institutional demand is declining. On Wednesday, SoSoValue data showed an inflow of $91.55 million for Bitcoin exchange-traded funds in the U.S., ending a four-day streak of outflows. However, the Bitcoin inflow remains below July 10, prior to its rise to $123,218 on July 14.
Low liquidity price ranges for Bitcoin indicate new accumulation areas.
On Wednesday, Glassnode revealed that Bitcoin entered a "liquidity gap" between $110,000 and $116,000, as illustrated in the chart below.
The price of Bitcoin dropped more than 3% in the two days following its close below the minimum consolidation level at $116,000, with a retest of its 50-day exponential moving average at $113,182. The 50-day average is around the previous all-time high of $111,980, making it an important support area. As of Thursday, BTC is above $114,900.
If #BTC closes above $116,000 daily, it may rise above $120,000, a psychological milestone.
BTC may revisit its all-time high of $111,980 on May 22 if it closes below its 50-day exponential moving average at $113,182.