Bitcoin (BTC) Price Drops Below $84K After Trump's Tariff Announcement

Bitcoin (BTC) price faced a strong bearish pressure after it skyrocketed toward the high of $88,500. The downward volatility surged near the peak and it pushed the BTC price toward the low of 82K.

Bitcoin (BTC) price faced strong bearish pressure after it skyrocketed toward the high of $88,500. The cryptocurrency's market activity surged in the past 24 hours, with its trading volume increasing by more than 84% to reach $53.3 billion.

As BTC price dropped below $100,000 on January 7, it showed a downward trend, reaching a low of approximately $89,397 on January 13. Later, on Feb 3, Bitcoin crashed again and reached a low near $91K. In recent days, the price has been facing increased volatility below $90K. Over the last 24 hours, its total market capitalization dropped by 1.36%, settling at $1.64 trillion.

Bitcoin fell following Trump's tariff announcement

The former president has introduced a 10% tariff on all goods entering the U.S., with additional tariffs for about 60 countries. Among them, China will face 34%, the European Union 20%, India 26%, and Japan 24%.

Initially, crypto traders observed that major cryptocurrencies, including Bitcoin and Ethereum, managed to hold steady as the new tariffs were announced. However, they struggled to maintain stability later when the markets in Asia started the day's trading.

The goal of these tariffs is to support American industries, and they've received mixed reactions from different markets. U.S. stocks have decreased, gold prices have increased, and cryptocurrencies are experiencing a downturn due to selling pressure.

In more bearish news, data from Coinglass shows that total Bitcoin liquidations hit almost $179.6 million in the past 24 hours. Of this, long positions made up about $62.2 million, with short positions close behind at around $117.4 million, showing that both buyers and sellers are feeling the heat.

Moreover, Bitcoin's open interest dropped by 3.14%, landing at about $52.16 billion during the same period. Despite these negative signs, the funding rate is still positive at +0.0062%, indicating that there might be a resurgence in buying interest. This could help the bulls gather strength and possibly reverse the current market slump.

Bitcoin price prediction: Technical analysis

Bitcoin recently faced a sharp drop after rejecting the peak of $88,500. As a result, the price of BTC dropped toward the low of $82K, showing rising bearish pressure.

Currently, Bitcoin is trading around $83,273, showing a drop of 1.2% in the last 24 hours. The $85,000 mark has become a critical resistance point where sellers are strongly resisting any upward movement. Despite this, buyers are not backing down and are gearing up for another attempt to breach this crucial level.

Should buyers succeed in breaking through the $85,000 resistance decisively, it could greatly improve market sentiment and potentially lead to further gains, with the next significant target being around $88,000-$90,000.

On the other hand, if the buyers' upward pressure keeps getting blocked at this resistance level, Bitcoin might face more downward pressure and could continue to consolidate within a range between $81,000 and $85,000.

Bitcoin price prediction: What to expect next

Short-term: According to BlockchainReporter, BTC price might aim for $85K. If it surges above that level, we might see $90,000. On the other hand, $81K-$85K is the lower range.

Long-term: According to Coincodex's latest Bitcoin price prediction, BTC is forecasted to increase by approximately 38.22%, potentially reaching $116,112 by April 28, 2025. Coincodex's technical indicators currently show bearish market sentiment, accompanied by a Fear & Greed Index reading of 26, indicating "Fear." Over the past 30 days, Bitcoin experienced 15 green days (50%) with a price volatility of about 2.97%. Considering these factors, Coincodex suggests it is currently not an ideal time to buy Bitcoin.

Investment risks for Bitcoin

Investing in Bitcoin can be risky due to market volatility. Investors should: