Bitcoin False Breakout at 110K? Negative Background Develops Amid Trump’s Tariff Announcement

Bitcoin ($BTC) recently hit a new All-Time High (ATH) of nearly 112K, driven by improved economic and fundamental data. However, the rally didn’t last long — Trump's latest speech shifted the market’s sentiment drastically.

Yesterday, Trump announced new 50% tariffs on the EU, which triggered a strong market reaction. Although the market managed to recover most of the losses, the overall risk remains high. These tariffs could worsen the global risk environment, potentially leading to a sell-off in both the stock market and cryptocurrencies, as investors may move funds into safe-haven assets like gold.

From a technical perspective, BTC is forming a false breakout above the critical 110K resistance zone (previous ATH). The price has pulled back, and bearish momentum is building, aligning with the negative shift in fundamentals.

Key Resistance Levels:

109.8K

110.3K

112K

Key Support Levels:

106.8K

105K

If bears manage to defend the 110K zone, Bitcoin may get stuck in the 110K–105K range. This kind of price action and rejection would confirm that the move above 110K was indeed a false breakout.

However, if Bitcoin breaks above 110K again and manages to consolidate, it would act as a strong bullish signal, potentially paving the way for new ATHs.

Final Thoughts:

Markets change daily. Right now, geopolitical risk is heightened, and Trump’s tariff announcement has added further uncertainty. If the risk environment continues to deteriorate, both crypto and equities could see more downside pressure. For now, 110K remains a crucial level for BTC. Unless it’s broken and held, caution is advised.

Trade at your own risk.

Best regards, Trade Cryptocurrency

Stay tuned for further updates.

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