Bitcoin’s price has been on a rollercoaster lately. Trump’s surprise 50% tariff on EU imports sent shockwaves through the market, and Bitcoin wasn’t immune.
The Initial Drop
The announcement caused Bitcoin to plummet from its all-time high near $111,800 to around $107,500 in a matter of hours. While it briefly recovered towards $109,000, the battle between buyers and sellers is intense.
Analyzing the Charts
Crypto analyst TehThomas points out two key price zones on the hourly chart:
- Lower Support Zone: Around $107,500. This was a support level during a previous rally and is now a crucial test.
- Upper Resistance Zone: Between $109,800 and $110,700. This area previously acted as support but is now strong resistance.
A breakout above or below these zones will likely determine Bitcoin’s next major move. Significant volume will confirm this move, either a bullish surge above resistance or a bearish drop below support.
What Happens Next?
The current price action shows Bitcoin struggling to break above the upper resistance zone and consolidating around the lower support. This makes the $107,500 level extremely important.
Bullish Scenario: A bounce off the $107,500 support could push Bitcoin towards the upper resistance zone. Breaking above $110,700 could lead to a new all-time high, potentially around $113,000.
Bearish Scenario: If Bitcoin loses the $107,500 support, it could fall towards $106,000, a level with significant sell pressure. Breaking below $106,000 could signal a short-term bearish trend.
The Bottom Line
At the time of writing, Bitcoin was trading around $107,017. The next few days will be crucial in determining whether Bitcoin continues its upward trajectory or experiences a significant correction.
