Cold Summer? Bitcoin Price Breaches $105K Support As Tariffs Return to Play

Bitcoin price has broken below the $105,000 support level for the first time in ten days after the United States and China resumed their trade tariff tiff. The crypto market bellwether traded at $104, 661 at the time of writing, down by 0.81% and on course to record its fourth successive day of losses. BTC has has declined by 6.3% in the last week, and the resumption of risk aversion will likely extend the downside.

On Friday, China responded to earlier claims by US President Donald Trump that it had violated its end of the bargain in relation to the two-week tariff ceasefire. On the one hand, the US claims that while China lowered the trade tariffs as agreed, it had employed countermeasures that restrained certain American companies and goods from trading freely. On the other hand, China says the US continues to carry out discriminatory measures, including restricting exports of semiconductors. This is an escalation from happenings earlier in the week when Trump revoked the visas of 280,000 Chinese students from studying in the US.

That set up has reignited fears of an escalation, with investors staying away from high-risk assets like cryptocurrencies. Bitcoin price previously struggled to reclaim the $105k support after returning to the six-figure mark on May 6. It eventually broke through that barrier ten days later, and hit all-time-highs of $112 four days later. Therefor, the current slide below that support raises the prospect of an extended decline or range-bound trading in the short-term.

Bitcoin Price Prediction

The RSI on Bitcoin price signals that the coin will likely trade downwards if resistance persists below $105,110. That momentum will likely see the first support established at $103,960. However, an extended control by the sellers will break below that level and could send the price lower to test $103,020.

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Conversely, going above $105,110 will shift the momentum to the upside. That will likely see primary resistance encountered at $105,890, above which the downside narrative will be invalid. Meanwhile, an extended control by the buyers will breach above that level and potentially test $107,020.