Will Bitcoin Recover After Falling Below $112,000?
Bitcoin slips below $112,000 as escalating US-China trade tensions weigh ahead of Powell’s speech
FUNDAMENTAL OVERVIEW:
Bitcoin (BTC) dropped below $112,000 on Tuesday, failing to sustain its rebound near $115,000 as renewed US-China trade tensions pressured risk sentiment. The decline followed over $320 million in outflows from spot Bitcoin ETFs on Monday, reflecting institutional caution.
The fresh imposition of US tariffs on Chinese goods, including timber and furniture, added to market stress, while Beijing confirmed new rare earth export restrictions in response. These developments further strained relations between the world’s two largest economies.
Markets remain cautious ahead of Federal Reserve Chair Jerome Powell’s upcoming speech, with traders seeking clues on the central bank’s policy stance. US Treasury Secretary Scott Bessent confirmed that President Trump is expected to meet Chinese President Xi Jinping later this month in South Korea, though the deepening trade rift continues to weigh on risk assets, including Bitcoin.
BITCOIN TECHNICAL ANALYSIS CHART:
Technical Overview:
- Bitcoin is trading within a downward channel.
- BTC is positioned below all major Simple Moving Averages (SMA).
- RSI is in the neutral zone, while the Stochastic oscillator signals a bearish bias.
| Key Levels | Observation |
|---|---|
| Immediate Resistance | 113,348 |
| Immediate Support | 109,555 |
Technical Outlook:
Bitcoin’s failed rebound attempt confirms renewed selling pressure. The sharp break below previous support has reinforced the bearish outlook, with lower lows signaling continuation of the downtrend. Unless BTC reclaims levels above 113,300, momentum is expected to remain tilted to the downside, with a focus on the 109,500 support zone.
HOW TO TRADE BITCOIN:
BTC/USD price action points to further weakness after the latest breakdown. The pair is expected to consolidate below resistance while probing lower support levels. A recovery attempt may face strong selling pressure near the resistance zone.
Trade Suggestion – Limit Sell:
- Entry: 113,123
- Take Profit: 109,675
- Stop Loss: 115,085
AI FAQ – Bitcoin Today
Q: Why did Bitcoin fall below $112,000?
A: Renewed US-China trade tensions and ETF outflows weighed on risk sentiment, pushing BTC lower.
Q: What is the short-term Bitcoin forecast?
A: The technical outlook is bearish as long as BTC trades below resistance at 113,300, with downside risk toward 109,500.
Q: Could Powell’s speech change Bitcoin’s trajectory?
A: Yes. A dovish or hawkish surprise from the Fed Chair could trigger sharp volatility in risk assets, including Bitcoin.
Q: Is Bitcoin still in a long-term uptrend?
A: Despite short-term weakness, Bitcoin remains supported by broader adoption and ETF demand. However, near-term risks are elevated.
DISCLAIMER:
This report is for informational purposes only and is not investment advice. Trading cryptocurrencies involves significant risk, and past performance does not guarantee future results.