Bitcoin Nosedives Below $98K – Will Trump’s Tariffs Send it Lower?

Bitcoin Price Analysis

Bitcoin’s price has plunged below the $98,000 mark, hovering around $96,550, as concerns grow over former US President Donald Trump’s plan to impose a 25% tariff on steel and aluminum imports. This move echoes his recent tariff announcements on Canada and Mexico, fueling fears of a global trade war that could impact financial markets, including cryptocurrencies.

If selling pressure continues, Bitcoin could test the previous low of $91,000. Analysts warn that a break below the critical $93,000 support level could trigger liquidations worth $1.3 billion in leveraged long positions, exacerbating the decline.

Bitcoin Slides Below $100K as U.S.-China Trade Dispute Intensifies

Bitcoin’s price dipped under $100,000 on February 4, pressured by heightened trade tensions between the U.S. and China. The latest U.S. tariff announcement on Chinese imports has rattled financial markets, increasing uncertainty and risk aversion.

Traders are closely watching $93,000, a key support level. A breakdown could set off $1.3 billion in liquidations, intensifying downward pressure. The Crypto Fear Greed Index has dropped to 46, signaling a shift toward caution among investors.

Despite near-term weakness, some analysts see a potential upside. Ryan Lee, chief analyst at Bitget Research, stresses that Bitcoin’s ability to hold above $93,000 is essential to avoid deeper losses. A slip under $90,500 could confirm a more extended downturn.

Meanwhile, James Wo, CEO of DFG, suggests that a weaker U.S. dollar—if trade tensions persist—may strengthen Bitcoin’s appeal as an alternative store of value.

• Bitcoin fell below $100K amid U.S.-China trade war fears.
• A drop below $93K could trigger $1.3B in liquidations.
• Weakening USD may boost Bitcoin as an inflation hedge.

Bitcoin Price Analysis – Consolidation Before Breakout?

Bitcoin (BTC) is trading at $97,400, up 1.23% over the last 24 hours, with a strong volume of $43.8B. Despite recent volatility, BTC remains in a consolidation phase within a symmetrical triangle pattern, signaling a potential breakout.

Technical Outlook:

• Key Resistance: $98,900 and $100,600 (near 50 EMA Fib 0.5 level).
• Key Support: $95,100 and $91,700 (Fib 0.236 major demand zone).
• Indicators: The 50-EMA at $98,000 is acting as a dynamic resistance, while Fibonacci retracement levels suggest potential bullish recovery if BTC holds above $97,200.

A breakout above $98,900 could fuel a rally toward $102,600, while a breakdown below $95,100 may push BTC toward $93,600. With the symmetrical triangle tightening, a decisive move is imminent—watch for volume confirmation before entering trades.

However, failure to maintain $95,313 as support could trigger further selling pressure. If BTC breaks below this threshold, it may decline toward $92,020, with additional downside risk near $89,270.

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Why Investors Are Bullish on $BEST

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