War and Tariff Uncertainty Shake the Markets. BTC Selloff?
Can Bitcoin Bulls Make a Comeback? Key Level May Provide an Answer
The crypto market had a good start to the week, with Bitcoin jumping from $105,400 to a high of $110,600, closing the day very close to the top. Trump’s tariffs negotiation is making headlines every day and this time it was no exception.
President Trump announced that U.S. and Chinese representatives would meet, following a phone call between himself and Chinese leader Xi over the weekend. The meeting was fruitful and the framework for a trade deal was agreed upon. All that’s needed now is for the two leaders to sign the paperwork. But while that may sound like a done deal, let’s wait and see the ink on the paper.
In other good news, the feud between Donald Trump and Elon Musk has cooled off to some extent. The Tesla CEO acknowledged the fact that he took things too far, posting on X: “I regret some of my posts about President Trump last week”. He then added, “They went too far”. President Trump appeared to bury the hatchet as well because when asked if he would be willing to have a discussion with Musk, he replied “I’d have no problem with it”. He added, “I’d imagine he wants to speak with me”.
Tariff Situation: Better but Not Rosy
Despite a good start to the week, Bitcoin and most other major cryptos gave back some of the gains in the second part of the week. Tariff uncertainty still lingers despite the agreement reached with China and this is still holding back investors from pouring more money into risky assets.
There are 18 important trade partners in talks with the Trump administration. According to Treasury Secretary Scott Bessent, the tariff pause that is supposed to end in early July would be extended for those who are negotiating “in good faith”. An eventual pause extension would mean that an agreement has not been reached yet, which would mean more uncertainty.
Israel’s “Preemptive Strike” Against Iran
On Friday morning, Israel launched airstrikes on Iran’s capital, Teheran, in what they called a preemptive strike. The strike was fuelled by fears over nuclear weapons development by Iran, according to Israeli sources.
U.S. stock futures and the crypto market sank as investors looked for safe-haven assets such as gold.
Chart Analysis – BTC/USD
Bitcoin is changing hands at $104,200, in light of recent developments. The level at $102,600 provided support in the past and it may trigger another bounce. A clear daily close below it will open the door for further downside movement, possibly into the $100K zone.
A bounce off $102,600 would challenge $106,800 and possibly the recent top at $110,600. For now, the RSI is not showing any extreme readings or divergence, thus it does not offer a strong signal. Price action will be heavily influenced by macroeconomic and geopolitical risk factors.
