Bitcoin (BTC) and other cryptocurrencies are experiencing fresh selling pressure as escalating trade tensions between the United States and China lead to new tariffs on both sides. The largest cryptocurrency dropped to as low as $91,000 on Monday, while major altcoins like Ethereum (ETH) and Solana (SOL) also faced losses.
The renewed market turbulence has wiped out the benefits from a short relief rally that occurred after the Trump administration decided to postpone tariffs on Mexico and Canada for a month. Investor trust in riskier assets has been notably affected, with US investors pulling a net $235 million from Bitcoin-centric exchange-traded funds (ETFs) on Monday.
Moreover, open interest in Bitcoin futures contracts on the Chicago Mercantile Exchange (CME) decreased by 4%, reflecting a more cautious attitude among institutional investors. President Donald Trump’s pro-crypto position has unintentionally brought more uncertainty to digital asset markets, as the landscape is now marked by geopolitical strife and regulatory obstacles.
Technical analysis by crypto analyst Ali Martinez suggests that $92,180 is a critical support level for Bitcoin, based on Market Value to Realized Value (MVRV) pricing bands. If this level fails, the next target could be $74,400. Despite the recent correction, Bitcoin traders are still enjoying a profit margin of 3.36%. However, historical trends indicate that local bottoms have formed when profit margins drop below -12%, suggesting that Bitcoin could have further downside potential before reaching a true bottom.
The ongoing US-China trade tensions and the resulting market uncertainty could continue to put pressure on Bitcoin and other cryptocurrencies in the near term. Investors should closely monitor developments in the trade dispute and their impact on global financial markets. As the MVRV Momentum indicator remains in negative territory, it signals ongoing market weakness, and further volatility can be expected.
Tags: Bitcoin, Cryptocurrency, US-China Trade War, Market Analysis, Technical Analysis
Source: https://www.newsbtc.com/bitcoin-news/bitcoin-price-on-the-brink-failure-to-hold-this-level-may-trigger-crash-to-74000/