Bitcoin (BTC) has recently experienced notable price volatility, influenced by several key factors:
1. Geopolitical Developments: The announcement of new U.S. tariffs—25% on imports from Mexico and Canada, and 10% on Chinese goods—has heightened market uncertainty. Investors are concerned about potential inflationary effects, which could deter the Federal Reserve from cutting interest rates, thereby impacting non-yielding assets like Bitcoin.
2. Market Liquidations: Following the tariff announcements, the crypto market witnessed a substantial liquidation of approximately $2 billion. Bitcoin's price dropped by 7.5% to $91,969, while Ethereum (ETH) saw a 20.1% decline to $2,510. Other cryptocurrencies, such as XRP and Dogecoin, also faced significant losses.
3. Technical Indicators: Bitcoin formed an 'Evening Star' pattern at $108,353, leading to a 17.5% correction down to $89,256. The asset found support around the $90,000 level, with buying interest indicated by longer lower shadows on candlestick charts. Currently, Bitcoin is consolidating between $100,000 and $107,000, with strong support at $99,000 and $85,000, and resistance at $110,000.
These factors collectively contribute to the
