Bitcoin’s meteoric rise to a new all-time high of $112,000 faced its first major test as President Trump’s EU tariff announcement triggered widespread market uncertainty, sending the leading cryptocurrency back to test crucial technical support levels.
The sharp reversal came after BTC’s historic push into price discovery territory, with the cryptocurrency now testing the daily EMA-8 – a key technical indicator that has provided reliable support throughout Bitcoin’s recent ascent from $80,000.
Market Sentiment Shifts as Bitcoin Tests Support
The pullback intensified after Trump’s announcement of potential 50% tariffs on EU imports sparked risk-off sentiment across global markets. While Bitcoin had shown exceptional strength during its rally to $111,980, the latest macro headwinds have forced a technical retest.
Critical Support Levels to Watch
- Daily EMA-8: Currently at $107,800
- 50-SMA: $106,273
- Key horizontal support: $103,600
Technical Analysis Points to Healthy Retracement
According to prominent analyst Big Cheds, Bitcoin’s return to the daily EMA-8 could represent a healthy retest rather than the start of a deeper correction. The technical expert notes that this moving average has consistently provided support since BTC traded in the $80,000 range.
FAQ
Is this pullback normal after reaching new all-time highs?
Yes, retracements of 10-15% are common after Bitcoin reaches new price milestones, allowing the market to establish fresh support levels.
What could trigger the next leg up?
A decisive break above $115,000 is widely considered the key level needed to confirm continuation of the bullish trend.
How does macro uncertainty affect Bitcoin?
While Bitcoin is often viewed as a hedge against traditional market uncertainty, significant macro events can still trigger short-term volatility as institutional investors adjust their risk exposure.
Time will tell if bulls can defend these crucial support levels and maintain the broader uptrend. For now, all eyes remain fixed on Bitcoin’s reaction to the daily EMA-8 as markets digest the latest macro developments.
