Bitcoin Price Falls Amid Trade War Tensions
Key Points:
- Bitcoin fell 4.72% over the weekend and another 3.50% during Monday’s Asian session as tensions driven by Trump’s tariffs have investors derisking their positions.
- China responded to Trump’s tariffs by indicating interest in imposing tariffs on US goods, while Canada imposed a 25% tariff on CA$155 billion worth of US goods.
Bitcoin’s price drop below $100,000 over the weekend has extended into today amidst fears of a potential trade war impacting global markets.
Analysis of Bitcoin’s Price Movement:
Bitcoin’s downward trend started when it failed to surpass the $108,000 mark two weeks ago (Jan. 20).
The inability to break higher indicates a lack of buying pressure, potentially leading to further price declines as seen in the past few weeks.
Technical Analysis:
On a lower time frame, Bitcoin’s price dropped below $99,000 before retracing to a key support zone between the 50.00% and 61.80% Fibonacci levels.
Following rejection at the supply zone, the price continued to decline, settling at a major demand level between $92,000 and $96,000 over the weekend.
Bitcoin has found support around $92,000 and has since rebounded by 4.92% from the Asian session lows.
Impact of Trade Wars on Markets
Global markets are facing uncertainty due to escalating trade tensions between the US and key trade partners like Canada, Mexico, and China.
The imposition of tariffs by the US and retaliatory measures by other nations have created volatility in various markets, prompting investors to derisk their portfolios.
As trade war fears intensify, cryptocurrencies, including Bitcoin, are among the assets experiencing selling pressure.
