Bitcoin (BTC) has found temporary stability around the $104,000 level following a dramatic price dip triggered by an unexpected public clash between former US President Donald Trump and Tesla CEO Elon Musk. This latest development comes as major Bitcoin whales continue accumulating at these levels, suggesting strong institutional confidence despite the high-profile drama.
Market Impact of Trump-Musk Feud
The premier cryptocurrency experienced significant volatility on Thursday when nearly $970 million in positions were liquidated as tensions escalated between Trump and Musk on their respective social media platforms. The price action saw BTC plunge below $101,000 before showing remarkable resilience in its recovery to current levels.
Critical Price Levels to Watch
According to market analyst Crypto Daan, Bitcoin is now trading within a crucial range:
- Upper resistance: $106,000
- Current consolidation: $104,000
- Critical support: $100,000
Technical analysis suggests two potential scenarios:
Bearish Case
If Bitcoin breaks below $100,000, key support levels include:
- Primary support: $95,000
- Secondary support: $85,000
Bullish Case
A breakthrough above $106,000 could trigger a new rally with initial targets around $120,000, supported by the formation of a cup and handle pattern.
Technical Indicators
Current market metrics show:
- RSI: 51.53 (trending upward)
- 24h price change: +2.98%
- Weekly performance: +1.12%
- Monthly gains: +7.49%
FAQ
What caused Bitcoin’s recent price drop?
The recent price volatility was triggered by a public dispute between Donald Trump and Elon Musk, leading to market uncertainty and significant position liquidations.
What are the key price levels to watch?
Traders should monitor $106,000 as resistance and $100,000 as critical support, with $120,000 being the next major target if bullish momentum returns.
Is Bitcoin still in a bull market?
Despite recent volatility, Bitcoin maintains its bullish structure with strong institutional support and positive technical indicators suggesting continued upward potential.