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Crypto Potato 2025-02-04 12:44:44

Bitcoin Price Analysis: BTC Shows Resilience Amid Market-Wide Sell-Off

Bitcoin faced increased volatility and notable liquidations due to Donald Trump’s imposition of trade tariffs on Canada, Mexico, and China. Nevertheless, the asset has received support from a crucial region, maintaining optimism in the market. Technical Analysis By Shayan The Daily Chart Amid heightened market turbulence triggered by Donald Trump’s imposition of trade tariffs on Canada, Mexico, and China, the cryptocurrency market experienced significant volatility in the past few days. This geopolitical move led to a drastic decline of approximately $400 billion in market cap and triggered liquidations worth $2.2 billion in just one day. Despite these disruptions, Bitcoin demonstrated resilience by maintaining its primary support levels. The price retraced toward a robust support zone that includes the 100-day moving average and the critical $90K area. Strong buying activity helped stabilize the asset within a narrow trading range between $90K and $102K, reflecting overall market indecision. As long as Bitcoin continues to hold the $90K support, there is optimism for potential all-time highs and the emergence of a renewed bullish trend. Conversely, a breakdown below this level could precipitate significant long liquidations and push prices lower. The 4-Hour Chart On the 4-hour timeframe, BTC experienced a sharp sell-off that saw the price breach the lower boundary of an ascending channel. This drop sparked panic among traders and resulted in severe liquidations. However, decisive buying activity at the $90K support prevented further downward momentum. After a brief liquidity sweep, Bitcoin rebounded, underscoring the determination of buyers to defend this critical level. While the market remains cautious and further sell-offs are possible amid prevailing fear, sustained support at $90K could set the stage for BTC to resume its upward trajectory, potentially reclaiming its previous all-time highs. On-chain Analysis By Shayan A significant fallout of the aforementioned volatile event was observed in the futures market, where nearly $500 million in long positions were liquidated in the past day and more than $2 billion before that, triggering a pronounced long squeeze. This liquidation contributed to heightened short-term volatility. Despite the chaos, Bitcoin found a solid footing at the key support level of $90K, hinting at potential short-term consolidation. In essence, while the sweeping market wipeout has injected a sense of caution and cooled down trading activity, it also appears to be clearing the way for new demand to enter the market. If buyers step in at critical support levels, the current consolidation phase may set the stage for a fresh wave of bullish momentum. The post Bitcoin Price Analysis: BTC Shows Resilience Amid Market-Wide Sell-Off appeared first on CryptoPotato .

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