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  February 5th, 2025 | Written by

Bitcoin Dips Below $95,000 Amid Tariff Concerns

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Bitcoin (BTCUSD) slipped below the $95,000 mark on Sunday amidst rising apprehension over the economic consequences of new U.S. tariffs on imports from Canada, Mexico, and China, as reported by Yahoo Finance. These tariffs could potentially spur inflation, limiting the possibility of a Federal Reserve rate cut, and applying pressure on non-yielding assets such as bitcoin.

Read also: Bitcoin Poised to Break All-Time High Amid Shifting Economic Landscape

Recent data from the IndexBox platform indicates that since Bitcoin’s peak last month, the cryptocurrency has depreciated by approximately 15%, marking its third successive day of losses as of Sunday, while also touching a three-week low. Despite this downturn, Bitcoin still boasts a 35% increase since the early-November U.S. election, supported by optimism regarding potential strategic reserves and a favorable regulatory environment from a crypto-enthusiastic White House and Congress.

Crucial Price Levels to Monitor

Technical analysis suggests Bitcoin’s pricing is exhibiting a possible double top pattern, a classic indication of a downtrend. The RSI’s bearish divergence, despite Bitcoin reaching a slightly higher peak last month, suggests dwindling buying pressure.

Key technical levels include the $92,000 mark, offering robust support, which Bitcoin temporarily fell below but managed to regain late Sunday. If this support falters, the next crucial level is $87,000, aligning with a pennant pattern that developed after a surge post-election. A breach below this could drive Bitcoin towards $74,000, a potential entry point for long-term investors near the March 2024 high.

On the upside, investors should watch the $106,000 resistance area closely, coinciding with peaks in December and January. Breaking through this level with strong volume could invalidate the double top and sustain Bitcoin’s long-term upward trajectory.

Source: IndexBox Market Intelligence Platform