-AD-
-AD-
HomeBitcoinBitcoin Drops Amid Global Trade Tensions, Tests Key Support Levels

Bitcoin Drops Amid Global Trade Tensions, Tests Key Support Levels

- Advertisement -
  • Bitcoin dropped 9% in three days as U.S.-led trade disputes spooked investors, triggering portfolio derisking globally.  
  • Technical resistance at $108,000 on Jan. 20 preceded declines; Fibonacci levels failed to halt the slide below $99,000.  

Bitcoin’s price declined 4.72% over the weekend, followed by an additional 3.50% drop during Monday’s Asian trading session. The downward movement coincided with escalating trade tensions triggered by U.S. tariffs, prompting investors to reduce exposure to risk-sensitive assets.

Over the past two weeks, Bitcoin has struggled to recover above the $108,000 mark, signaling diminished buying interest.

The U.S. recently imposed tariffs on imports from Canada, Mexico, and China, including a 25% duty on steel and aluminum. In response, Canada introduced a 25% tariff on $155 billion of U.S. goods, while China and Mexico outlined plans for retaliatory measures.

Bitcoin’s price trajectory reflects these pressures

After failing to sustain momentum above $108,000 on January 20, the asset entered a downward trend. By Thursday, January 30, Bitcoin broke below $99,000 before briefly retracing to a technical resistance zone between $96,000 and $98,000—a range aligned with the 50% and 61.8% Fibonacci retracement levels.

BTCUSDT_2025-02-03_08-15-21
Source: Tradingview

This area, often monitored by traders, failed to hold as selling resumed. Prices then slid to a demand zone between $92,000 and $96,000 by February 2.

BTCUSDT_2025-02-03_08-14-27
Source: Tradingview

As of Monday, Bitcoin found temporary stability near $92,000, rebounding 4.92% from intraday lows of $91,176. Market observers suggest this level could act as short-term support, though broader sentiment remains tied to geopolitical developments. 

Trade disputes between the U.S. and its partners have injected uncertainty into global markets, with equities, commodities, and crypto assets all facing pressure.  

ETHNews current data shows reduced trading volumes across major exchanges, indicating cautious participation. ETHNews analysts emphasize that prolonged trade disputes could prolong Bitcoin’s consolidation phase, delaying potential recovery until macroeconomic conditions stabilize.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
RELATED ARTICLES

LATEST ARTICLES