Bitcoin’s price action has entered a decisive phase following former President Trump’s unexpected announcement of 50% EU tariffs, with the leading cryptocurrency currently testing crucial support at $107,000. The announcement triggered an immediate selloff from the recent all-time high of $111,800, raising questions about Bitcoin’s next directional move.
This market reaction comes as Bitcoin ETFs continue to see massive inflows, recently hitting $2.75 billion, highlighting the contrast between institutional confidence and short-term market volatility.
Technical Analysis: Fair Value Gaps Define Key Levels
According to prominent crypto analyst TehThomas, Bitcoin’s price structure is currently compressed between two significant fair value gaps (FVGs):
- Lower FVG: $107,500 (Critical support level)
- Upper FVG: $109,800-$110,700 (Resistance zone)
This technical setup aligns with recent analysis warning of potential pullback risks at these levels, suggesting a period of heightened volatility ahead.
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Bullish vs Bearish Scenarios
The market faces two potential scenarios:
Bullish Case:
- Support holds at $107,500
- Breakout above $110,700
- New target: $113,000
Bearish Case:
- Break below $107,500
- Drop to $106,000 liquidity pool
- Potential further downside if $106,000 fails
Market Impact of Trump’s Tariff Announcement
The proposed 50% tariff on EU imports represents a significant macroeconomic shock that could continue influencing crypto markets. This development comes as experts warn about potential dollar instability from Trump’s economic policies.
FAQ Section
What caused Bitcoin’s recent price drop?
The immediate catalyst was Trump’s announcement of 50% tariffs on EU imports, triggering a broader market selloff.
What are the key price levels to watch?
Critical support lies at $107,500, with resistance between $109,800-$110,700.
Could Bitcoin reach new all-time highs soon?
A break above $110,700 could trigger a push toward $113,000, but significant buying pressure would be needed.
At time of writing, Bitcoin trades at $107,017, with market participants closely monitoring volume patterns for confirmation of the next major move.
