Bitcoin lost the $100k support again for the second time this week. The dip comes in the earlier on Sunday. However, the struggling cryptocurrency plunged even lower at noon (UTC).
The 2-hour chart displayed its longest candle around 16:00 UTC. It opened with prices at $99,343 but slipped as low as $96,95, signifying a more than 2% decline. The apex coin first lost the $100k mark around 2 am (UTC) following several fundamentals that shook the market.
The United States President announced several tariff increments, targeting all imports from Mexico, Canada, and China. He cited the influx of illicit drugs from Mexico as the reason for the 25% tariff. The President imposed a 25% tariff on Canada and a 10% tariff on China.
The latest increment will take effect on Tuesday. However, the crypto market is reacting to the start of the trade war. The US northern neighbor responded by imposing a 25% tariff on imports from the USA. This response may result in further hikes from Donald Trump.
Crypto investors are unsure about how to react to the latest developments. Nonetheless, economists express displeasure over the effect the development would have on the US economy. A report from NBC cited the reaction of some individuals.
One such is the chairperson of the United States National Association of Home Builders, Carl Harris. He said the tariffs on imports will drive material costs higher, causing an increase in housing prices. He added “Further supply chain disruptions from increased tariffs coupled with increased demand for materials could also hinder rebuilding efforts in areas affected by natural disasters.”
The tariff that importers will pay will be transferred to the consumers. It is almost certain the latest move will increase the cost of goods, including lumber, farm produce, electronics, and vehicles.
How Bitcoin Investors Are Reacting
Bitcoin price shows that many investors are panicking due to the uncertainties and woes the latest development may bring. Data from CryptoQuant shows them dumping their assets. The exchange reserves are increasing due to this trend. More assets moved from cold storage to these trading platforms, increasing the selling pressure.
Although the miners are no longer selling, more long-term holders joined the trend, moving assets to sell. Active addresses plunged by 33% as transactions nosedive by 46%.
The sentiment across several key regions remains mostly bearish. The Coinbase premium is negative, representing whale sentiment and retailers from the US. They exert more selling pressure on the market than the previous day. This is true with South Korean traders, as the Korea Premium is negative.
BTC Sees Buyback
The coin dipped to a low of $96,800. It sees buyback and trades at $98,326 at the time of writing. The accumulation and distribution on the 2-hour chart rose notably as the bulls began soaking the excess supply.
The moving average convergence divergence on this timeframe prints bullish signals. The lower timeframe exponential is on the rise and may intercept the longer timeframe EMA in the coming hours as buying resumes.
The one-day chart remains bearish. MACD displayed a negative interception a few days ago. Its 12-day EMA and 26-day EMA continue downward. The relative strength index and A/D also plummet, with RSI hitting 43.
It is worth noting that the apex coin bounced off the 23% fib level. Further declines may send it lower, closer to the 38% fib level. Nonetheless, previous price movements show notable demand concentration around 93k and $92k. On the other hand, the asset will look to reclaim the $100k mark.
