After a strong rally above the level of all-time high, Bitcoin saw a sharp fall in the last hours of the trading session, moving it below $109k. Following a month of calmness on the tariffs and with positive developments between the US and China, Trump is back with tariffs, this time solely on the EU.
Trump said the talks with the union are leading to no meaningful results and recommends a straight 50% tariff on the EU starting from June 1.
With this news, bitcoin and other major coins fell sharply, erasing the recent gains in the previous trading sessions. At the time of writing, Bitcoin is trading at $108,500, down by 2.7% in the past 24 hours. Along with this price decrease, the total market cap of Bitcoin reached $2.15 trillion, with a 24-hour trading volume of 39.37 billion.
In this overview, we will analyse the key technical levels and trend directions for Bitcoin to monitor in the upcoming trading sessions. The chart mentioned below is based on the 15-minute timeframe.
Bitcoin Chart Analysis & BTCUSD Price Action.
Bitcoin made new highs in the recent trading sessions with a strong bullish momentum. Presently, it has a strong downside movement with the effect of the recent news developments in the crypto market.
Currently, Bitcoin is trading around $108,500 with a first level of support at $107,252. If the price manages to break this level, we can see a downfall to the next support at $106,080, and a decline in price below this level will push the price to fall to the price level at $104,145.
On the upside, we can see in the chart that the first level of resistance is at $110,282, followed by the next resistance at $111,877 and $113,943. If the price manages to break above the first level of resistance this level we can see an upside movement to the next level of resistance in the next trading sessions.
In Closing
Currently, Bitcoin is experiencing a downtrend and can become sideways in the next trading sessions.
If the price successfully breaks through these resistance levels, we can anticipate a stronger upward trend to a sideways trend in the upcoming trading sessions. However, if the resistance levels are not breached, the market may shift into a bearish trading session.
Traders should consider these key support and resistance levels to enter long or short positions following the price break from the key levels. Also, traders can combine moving averages for more accurate entry and exit points.
