Bitcoin Drops Amid Global Trade Tensions, Tests Key Support Levels
- Bitcoin dropped 9% in three days as U.S.-led trade disputes spooked investors, triggering portfolio derisking globally.
- Technical resistance at $108,000 on Jan. 20 preceded declines; Fibonacci levels failed to halt the slide below $99,000.
Bitcoin’s price declined 4.72% over the weekend, followed by an additional 3.50% drop during Monday’s Asian trading session. The downward movement coincided with escalating trade tensions triggered by U.S. tariffs, prompting investors to reduce exposure to risk-sensitive assets.
Over the past two weeks, Bitcoin has struggled to recover above the $108,000 mark, signaling diminished buying interest.
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— Donald J. Trump (@realDonaldTrump) February 1, 2025
The U.S. recently imposed tariffs on imports from Canada, Mexico, and China, including a 25% duty on steel and aluminum. In response, Canada introduced a 25% tariff on $155 billion of U.S. goods, while China and Mexico outlined plans for retaliatory measures.
Bitcoin’s price trajectory reflects these pressures
After failing to sustain momentum above $108,000 on January 20, the asset entered a downward trend. By Thursday, January 30, Bitcoin broke below $99,000 before briefly retracing to a technical resistance zone between $96,000 and $98,000—a range aligned with the 50% and 61.8% Fibonacci retracement levels.
This area, often monitored by traders , failed to hold as selling resumed. Prices then slid to a demand zone between $92,000 and $96,000 by February 2.
As of Monday, Bitcoin found temporary stability near $92,000, rebounding 4.92% from intraday lows of $91,176. Market observers suggest this level could act as short-term support , though broader sentiment remains tied to geopolitical developments.
Trade disputes between the U.S. and its partners have injected uncertainty into global markets, with equities, commodities, and crypto assets all facing pressure.
ETHNews current data shows reduced trading volumes across major exchanges, indicating cautious participation. ETHNews analysts emphasize that prolonged trade disputes could prolong Bitcoin’s consolidation phase, delaying potential recovery until macroeconomic conditions stabilize.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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