The ongoing tariff war between the United States and other countries has had a significant impact on the crypto markets, causing a bloodbath in recent trading sessions. Bitcoin, which had been trading above $102,000, quickly dropped below $91,500 as fear and panic gripped traders. While the temporary pause in tariffs provided a brief respite for Bitcoin and other altcoins, bearish activity has once again intensified.
Bitcoin is currently struggling to hold above the crucial support level of around $99,000, with bulls hoping to push the price back above $100,000. Despite some signs of strength in the BTC price, spot volume remains relatively low. Volatility and open interest are also subdued, indicating that retail traders may have been shaken out during the recent sell-off while larger market players make strategic moves.
The recent closure of the CME gap by revisiting $100,000 suggests that a major price movement may be imminent. However, fractals continue to show a negative outlook, raising concerns about future price action. The MACD and Bull Market Support Band are on the verge of a bearish crossover, signaling a potential shift from a bullish to a bearish trend that could see Bitcoin prices drop as low as $86,000.
Despite these bearish signals, there is still a possibility of a bullish continuation as long as Bitcoin remains within the critical demand zone of $96,475 to $99,360. Breaking through the supply wall between $102,350 and $103,900 could pave the way for a sustained move above $100,000. The upcoming weekly close will be crucial in determining the direction of the next price action.
Overall, the cryptocurrency market remains volatile and uncertain, with both bullish and bearish scenarios on the table. Traders and investors should exercise caution and closely monitor key support and resistance levels to navigate the current market conditions effectively.