Bitcoin (BTCUSD) Slips Below $95,000 Amid Rising Apprehension over Economic Consequences of New U.S. Tariffs

Recent data from the IndexBox platform indicates that since Bitcoin's peak last month, the cryptocurrency has depreciated by approximately 15%

Bitcoin (BTCUSD) fell below the $95,000 mark on Sunday as traders grew increasingly concerned about the economic impact of new U.S. tariffs on imports from Canada, Mexico, and China, according to Yahoo Finance. These tariffs have the potential to stoke inflation, making a Federal Reserve rate cut less likely and putting pressure on non-yielding assets like bitcoin.

Bitcoin has lost around 15% since reaching a record high last month, making Sunday the third day in a row of losses and marking a three-week low, recent data from the IndexBox platform showed. Despite the sell-off, bitcoin is still up 35% since the early November U.S. election amid optimism over talk of strategic reserves and a crypto-friendly White House and Congress.

Key Price Levels to Watch

Technically, bitcoin's price action is forming a potential double top pattern, a classic indication of a downtrend. The bearish divergence on the RSI, despite bitcoin making a slightly higher peak last month, suggests decreasing buying pressure.

Major technical levels to keep an eye on include the $92,000 mark, which has provided strong support, which bitcoin briefly fell below but managed to reclaim late Sunday. If this support gives way, the next key level is seen at $87,000, aligning with a pennant pattern that formed following a post-election rally. A break below this could take bitcoin towards $74,000, which could be a potential entry zone for long-term investors around the March 2024 high.

To the upside, investors should be watching the $106,000 resistance zone closely, which marks the peaks in December and January. A break and close above this level on strong volume could negate the double top and keep bitcoin in a longer-term bull trend.