Bitcoin Price News: BTC Hits Key Trend Line Supports as Trump’s Tariffs Kick In

Bitcoin (BTC) has gone down by 2.2% in the past 24 hours, triggering a massive wave of short liquidations, as Trump’s tariffs are set to take effect today.

On Thursday, President Trump signed an executive order that immediately implements reciprocal tariffs on all countries – including those that have negotiated arrangements with the U.S. during a 90-day pause extended by the White House.

Brazil is at the top of the list with a 50% levy followed by Canada, China, and Mexico, whose goods will pay a base rate of 35%, 30%, and 25% respectively.

The crypto market reacted negatively to the news as prices plunged below their most recent swing lows.

Crypto Liquidations Daily – Source: CoinGlass

Data from CoinGlass shows that $730 million worth of long positions in multiple cryptocurrencies have been wiped out by today’s plunge. Yesterday, that number closed at $512 million, with BTC accounting for nearly a third of that total.

In this bull cycle, even the slightest price drops can trigger hundreds of millions in liquidations as traders seem to be heavily ‘one-sided’ amid Bitcoin’s lone-wolf push to a new all-time high.

The top crypto has reached new price records recently while the most valuable altcoins like Ethereum (ETH) and XRP (XRP) have not yet managed to achieve the same feat.

Shorts Are Building Up Above $120K and That’s Good for Bulls

Today, Bitcoin has hit a key trend line support in the daily chart. The next few days will determine where the price action may be heading depending on whether the price breaks below this line or bounces strongly off it.

BTC/USD Daily Chart (Binance) – Source: TradingView

This latest touch occurs as BTC struggled to move above the $120,000 level multiple times in the past few days.

When prices don’t make a new high, they drop. The market is now looking for the kind of liquidity that can push BTC up the ladder again. Short positions at this point may have started to accumulate above $120,000, creating the perfect stage for a short squeeze if BTC moves up that mark.

The most relevant support area to watch is the $111K area, which was a strong level of resistance for the token in the past. Buyers may now enter a long position at this area to position themselves for the next leg up.

Strong Reaction Upon Hitting the Trend Line Confirms Its Relevance

Moving to a lower time frame, we can see the strong reaction that this trend line support has caused in BTC’s price action.

BTC/USD Hourly Chart (Binance) – Source: TradingView

The price has been moving up and down and trading volumes surged past the 14-period moving average.

A bearish breakout could provide a perfect entry for a short position. However, traders should be cautious as these high-volume areas tend to produce long wicks and high levels of volatility that could flush out tight stops.

On the other hand, the current macro backdrop is bullish for Bitcoin despite Trump’s tariffs. The Fed could soon be forced to lower rates to help the economy if those measures backfire and cause an economic slowdown.

Lower rates support further risk-taking and lower borrowing costs, which increases the market’s liquidity. It also results in a weaker dollar, which favors BTC prices as well.

This ‘one-sided’ market needs bears. Hence, a drop below this key trend line support would not be such a bad thing. BTC may drop to as low as $100,000 if this turns into a full-blown ‘mean reversion’ to the 200-day exponential moving average.