Bitcoin At Crossroads After Trump Tariff Shock: Breakdown Towards $106K Or New ATH?
Bitcoin experienced heightened volatility following President Trump's announcement of a 50% tariff on all EU imports, causing a sharp decline from nearly $111,800 to around $107,500. A brief recovery to $109,000 was observed, but the market remains in a struggle between buyers and sellers. Technical analysis identifies two key fair value gaps (FVGs): a lower FVG at $107,500 and an upper FVG between $109,800 and $110,700. The lower FVG is crucial as it may lead to either a rebound or significant retracement. A bullish scenario suggests that a bounce at $107,500 could push prices toward the upper FVG and potentially reach new highs around $113,000. Conversely, a drop below $107,500 could lead to a decline toward $106,000, where sellers may gain control. At the time of reporting, Bitcoin was trading at $107,017.
