Bitcoin News: BTC Could Potentially Slide To $91,000 Price

Bitcoin and the larger cryptocurrency market faces risk of a sharp sell-off, as news of recent announcement by U.S. President hits the market.

Donald Trump just announced plans to impose retaliatory tariffs against multiple countries.

A wave of FUD swept across the markets, leading to massive pullbacks in Bitcoin, stocks and fiat currencies.

The bearish outcome was the result of a knee-jerk reaction to the U.S imposing tariffs against multiple countries.

Trump’s ascension into power triggered economic wars with tariffs as the ammunition.

The last time things got heated over tariffs, investors started pulling liquidity from the market, resulting in a bearish outcome.

Investors may respond similarly to fresh reports about tariff war escalation. The SP 500 had reportedly already responded with a 70-point decline at press time.

The correlation between the SP 500 and the crypto market suggests that Bitcoin could potentially have a bearish weekend.

Multiple Signs Side With Bitcoin Bears

Trump’s tariff announcements align with some interesting observations that underscore a higher probability of more downside risk.

For example, its price just retested its short term declining trend line as seen on the 4-hour chart and sell pressure was already manifesting at the time of observation.

Bitcoin price action / Source: TradingView

Bitcoin bulls also appeared to have been rejected at the 50% RSI level. BTC exchanged hands at $97,364 and a sell pressure resurgence may push it towards $91,000 where it will retest support.

Meanwhile, in other Bitcoin news, the crypto registered a significant dip in appetite for leverage as economic conditions yielded more uncertainty.

This was also followed by an uptick that was accompanied by a spike in Bitcoin long term holder SOPR.

Bitcoin price action / Source: TradingView

The spike in long Term holder SOPR confirmed that the market experienced a sizable sell off from long term holders.

Meanwhile, the latest market data shows that spot flows remained negative by over $113 million in the last 24 hours.

Demand in the derivatives segment was also in the red. Exchange flows aligned with this data, revealing that inflows were notably higher than outflows.

A sign that there was more sell pressure than demand.

The outcome this time may possibly been subdued or limited because he unexpected liquidation event already happened earlier in the week.

Bitcoin News: List of States Rooting for Strategic Reserves Grows Longer

Trump has been working towards making Bitcoin a reserve asset at the Federal capacity.

An interesting trend has been brewing at the regional level. The number of states introducing bills in favor of a Bitcoin strategic reserve status has been on the rise.

Recent reports revealed that Maryland just became the latest state to introduce a bill seeking to allow BTC to be used as a strategic reserve asset.

The bill highlights the growing Bitcoin acceptance as government sentiment around the cryptocurrency changes.

This also indicates that BTC’s long term prospects remain bullish despite the prevailing short term headwinds.