Bitcoin price started a fresh declined below the $100,000 zone. BTC is down close to 10% and might test the $90,000 support zone.

• Bitcoin started a fresh decline below the $100,000 level.
• The price is trading below $99,500 and the 100 hourly Simple moving average.
• There is a key bearish trend line forming with resistance at $96,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another increase if it stays above the $90,000 zone.

Bitcoin Price Dives Below $100,000

Bitcoin price started another decline below the $100,000 zone. BTC gained bearish momentum for a move below the $98,000 and $95,000 levels. It even dived below $93,000.

A low was formed at $90,944 and the price is now consolidating losses. There was a minor increase above the $92,500 level. The price even tested the 23.6% Fib retracement level of the downward move from the $106,000 swing high to the $90,944 low. However, the bears are now active near the $95,000 zone.

Bitcoin price is now trading below $95,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $95,000 level. The first key resistance is near the $96,500 level. There is also a key bearish trend line forming with resistance at $96,200 on the hourly chart of the BTC/USD pair.

The next key resistance could be $98,400 or the 50% Fib retracement level of the downward move from the $106,000 swing high to the $90,944 low. A close above the $98,500 resistance might send the price further higher. In the stated case, the price could rise and test the $96,800 resistance level. Any more gains might send the price toward the $100,000 level.

Another Decline In BTC?

If Bitcoin fails to rise above the $95,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $92,500 level. The first major support is near the $92,000 level.

The next support is now near the $90,000 zone. Any more losses might send the price toward the $88,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $92,500, followed by $90,000.

Major Resistance Levels – $95,000 and $96,500.

Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, stated that a prolonged tariff war could have a substantial positive impact on Bitcoin over time.

Over the weekend, President Donald Trump imposed tariffs on Canada, Mexico, and China.

Tariff War: Good for Bitcoin?

President Trump has imposed a 25% tariff on imports from Canada and Mexico. Additionally, a 10% tariff on Chinese goods and a 10% tariff on Canadian energy resources are implemented. According to the BBC, Canada and Mexico have also announced plans to impose retaliatory tariffs.

In a recent post on X, Park outlined the Triffin dilemma and President Trump’s personal objectives to explain Bitcoin’s long-term rise.

“Tariffs might be just a temporary tool, but the permanent conclusion is that Bitcoin is not only going higher—but faster,” Park wrote.

Park elaborated that the Triffin dilemma stems from the US dollar’s status as the world’s reserve currency, granting it an “exorbitant privilege.” This privilege results in three structural effects: an overvalued dollar, a persistent trade deficit, and lower borrowing costs for the US government. 

While the US benefits from cheaper borrowing, it seeks to correct the imbalances of an overvalued dollar and continuous trade deficits. Therefore, Park suggests that tariffs are being used as a negotiation tactic to push for a new international agreement. This, he argues, is similar to the 1985 Plaza Accord, aimed at weakening the dollar.

Moreover, Park argues that Trump has a personal stake in this strategy. Given his heavy exposure to real estate, his primary objective is to bring down the 10-year Treasury yield. 

In a scenario of a weaker dollar and falling US interest rates, risk assets in the US could surge while foreign economies struggle with rising inflation and currency devaluation. Faced with financial instability, Park predicts global investors will turn to alternative assets.

“The asset to own therefore is Bitcoin,” Park noted.

He emphasized that as economic tensions escalate, Bitcoin’s ascent will accelerate.

President Trump’s Tariffs Spark Crypto Market Collapse

Meanwhile, the threat of a trade war sent the crypto market plunging. Over the past few hours, Bitcoin briefly dropped to a minimum of $91,281, while Ethereum fell as low as $2,143. This has resulted in billions being wiped from the market

According to Coinglass, total liquidations exceeded $2.23 billion within the past 24 hours. 

“Worst liquidation event in history in a single day,” crypto analyst Miles Deutscher posted on X (formerly Twitter).

Deutscher added that it was worse than the LUNA and FTX collapses, which saw $1.6 billion in liquidations.

Of the total liquidations, $1.88 billion came from long positions and $349.81 million from short positions. In total, 726,788 traders were liquidated.