Bitcoin Slides Below $107,500 Following Trump’s EU Tariff Warning, Prompting Market Sell-Off
Bitcoin’s price dropped sharply after former President Trump’s announcement of potential tariffs on the European Union rattled investor confidence. The cryptocurrency broke below a crucial support level, with heightened volatility playing out around $107,000.
Strong resistance has formed near $108,300 amid heavy trading volumes, while buyers are defending the $106,700 to $107,000 support zone.
Between 13:06 and 13:36, Bitcoin briefly rallied from $107,373 to $107,671 before a swift reversal pushed prices down once again.
Currently, Bitcoin remains caught in a tight range, trading between two significant fair value gaps that will likely determine the near-term price direction.
Should bulls regain control above the $109,000 to $110,000 range, Bitcoin may attempt to break resistance above $112,000. On the flip side, a drop beneath $107,000 could trigger a test of liquidity near $106,000.
Technical Overview:
- Late May 24 saw a surge in selling volume (16,335 BTC), setting a key resistance around $108,300.
- Support between $106,700 and $107,000 held during early trading on May 25, though recovery efforts stalled near $107,500.
- Technical indicators point to a short-term bearish trend with sideways consolidation before a decisive move.
- A sharp price jump of nearly $150 at 13:35, accompanied by a volume spike, created temporary resistance at $107,630.
- Support near $107,400 was tested late in the session, signaling ongoing correction from the recent high of $109,239.
