Bitcoin price broke downward to the lowest mark since since mid-November 2024, in Tuesday, after declining by 2.2% to trade at $89,498 at the time of writing. The crypto market broke below the psychological $90k mark for the first time in six weeks, adding a Fear, Uncertainty and Doubt (FUD) to the mix.
The sour sentiment created by an escalating trade tariff war among some of the leading global economies has seen investors increasingly flee from high risk assets like cryptocurrencies. Bitcoin price has been ranging between $90k-$99k for the past twenty days, and a breakout below that range signals a potential onset of a bearish takeover.
US President Donald Trump stated on Monday that 25% tariffs on imports from Canada and Mexico will go forward starting next month. The belligerent nations had paused the tariffs for 30 days based on Canada and Mexico’s commitments to meet some border control measures against illegal immigration and drugs.
However, the resumption of the tariffs points to a prolonged tussle that could exacerbate the sour market sentiment. In addition, Trump will proceed with the reciprocal tariffs, scheduled to start in early April. That could broaden the scope of the impact, adding downward pressure on Bitcoin price and other cryptocurrencies.
Bitcoin Price Prediction
The momentum on Bitcoin price calls for further downside below the psychological mark at $89,960. In that case, the price will likely move to the first support be at $86,000. An extended control by the sellers will break below that level and potentially test the second support at $84,100.
Conversely, moving above $89,960 will shift the momentum to the upside, in which case the BTCUSD point will likely encounter the first resistance at $92,500. Breaking above that level will invalidate the downside narrative. Furthermore, the resulting momentum could result in further gains to test the second resistance at $95,150.
