Bitcoin and the broader cryptocurrency market faced a turbulent session as BTCUSD fell 2.53%, hitting a low of $91,227.19 before rebounding to $94,577.18.
President Donald Trump’s new trade levies against China, Canada and Mexico include a broadside against e-commerce, with apparent plans to extinguish a long-held tariff exemption for packages worth less than $800. https://t.co/xdIRDqNDxi
— Bloomberg (@business) February 2, 2025
The decline came amid new US tariffs on China, Mexico, and Canada, fuelling uncertainty and prompting a retreat from risk assets. Meanwhile, Ethereum plummeted 27%, deepening bearish sentiment across digital markets.
Image: BTCUSD drops 2.53%, testing key support at 91,227 as early signs of recovery emerge from oversold conditions, as seen on the VT Markets app.
Bitcoin’s sell-off intensified as traders reacted to trade policy concerns, sending the price below $92,000. However, buyers emerged near the session’s low, driving a slight recovery. The 50-period moving average (MA) on the 15-minute chart remains a key resistance zone, indicating potential selling pressure ahead.
The MACD (12,26,9) shows weakening bearish momentum, with the histogram contracting and the MACD line crossing above the signal line. This suggests a possible short-term stabilisation, though a break above $95,000 is needed to regain bullish momentum.
Immediate resistance stands at 96,000, aligning with the 30-period MA, while support is firm at 91,227, the recent low. A breakout above resistance could extend gains, whereas failure to hold support may accelerate downside pressure.
Traders will be watching for further tariff-related developments and Federal Reserve guidance. If economic data remains strong, Bitcoin could face further downside as expectations for Fed rate cuts diminish. However, if risk appetite improves, BTC may attempt to reclaim $97,000.
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