The cryptocurrency market was rocked last night, as Bitcoin (BTC) plummeted to $102,000, marking a sharp 20.5k drop within minutes. This dramatic correction, coupled with a complete liquidation of long positions clusters down to $101,000, raises a crucial question: is this a reset before a new rally? Let's analyze the key levels to monitor and the potential implications.
The Bitcoin collapse was precipitated by yesterday’s announcement of new tariffs by Donald Trump, aimed at strengthening the American economy against China.
This decision, perceived as an escalation in trade tensions, triggered a wave of selling across traditional markets, directly impacting risk assets like Bitcoin.
Traders are closely monitoring critical thresholds to anticipate the next movements. Immediate support levels are positioned at $112,000 and $109,000, where accumulation could slow the descent.
On the upside, key resistance levels are at $115,000 and $118,000, points where selling pressure might emerge. A break below $108,000 could exacerbate the correction, while a bounce toward $115,000 might signal the return of bullish confidence. These zones will be decisive in the coming hours.
The massive liquidation of long positions down to $101,000 has eliminated excess leverage, a phenomenon often observed before a market reset. This purge may have cleared overly optimistic positions, opening the door for accumulation by long-term investors ahead of a potential bullish rally.
However, volatility remains high, fueled by macroeconomic uncertainties, particularly the global trade tensions following yesterday’s Trump tariff announcement. For bold traders, this dip represents a buying opportunity, but caution remains essential in a still fragile market.
According to Altstreetbets, a further 20% drop could occur for altcoins in the coming days.
In conclusion, this crash to $102,000 could mark a turning point. Levels between $109,000 and $118,000 will be closely monitored.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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