Bitcoin outlook: Fell near key 90K support zone on tariffs, but near-term outlook may be more positive
|Bitcoin fell below psychological 100K support and hit the lowest in almost three week, to challenge again key 90K support zone, which marks the floor of broader consolidation range.
The leading cryptocurrency remained at the back foot after hitting new record high after President Trump’s inauguration on Jan 20 and accelerated lower on announcement of implementation of trade tariffs over the weekend.
Panic in the markets followed Trump’s decision, prompting traders out of risky assets and pushing the bitcoin sharply lower after it registered the first monthly close above 100K in January.
Renewed pressure on 90K breakpoint made traders more cautious despite the price bouncing strongly after hitting new low on Monday (91054) with the downside expected to remain vulnerable as long as the price stays below 100K, as daily studies are bearishly aligned (daily Tenkan/Kijun-sen bears-cross / negative momentum.
However, growing fears of stronger destabilization of global economy by the trade wars may prompt investors into digital assets, which are not directly connected to traditional markets and can be used as safe haven assets.
In addition, President Trump’s promises on fully focusing on further liberalization of crypto markets, could play a key role, as overall positive sentiment is directly fueled by these signals.
Traders are expected to remain cautious, especially if the price remains below 100K, though mainly betting on limited dips (to be contained at 90K) to provide better buying levels.
Sustained break above 100K is needed to sideline downside risk (break to be confirmed by lift above 20DMA, 102600) and shift near-term focus higher.
Res: 99263; 10000; 101858; 102600
Sup: 96530; 93291; 941054; 89038
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