After the tariff announcement by United States President Donald Trump, the overall cryptocurrency market witnessed a massive sell-off. Amid this, Bitcoin (BTC), the world’s largest cryptocurrency by market cap, sank over 6%, turned bearish, and is now poised for a significant price decline.
Why is Bitcoin Price Crashing?
The potential reason for the market sell-off is the tariff announcement, under which major countries will now face a 10% tariff, while China, the EU, and Japan will face tariffs of 34%, 20%, and 24%, respectively.
Following this development, BTC has lost its recent support, which it formed during the market uncertainty.
Bitcoin Technical Analysis and Upcoming Level
According to expert technical analysis, BTC has recently lost the $82,500 support level and has fallen below the 200-day Exponential Moving Average (EMA), indicating that the asset is entering a strong bearish trend.
Based on recent price action, if BTC closes its daily candle below the $81,500 level, there is a strong possibility it could fall significantly and hit the $77,700 level or even lower in the coming days.
Besides BTC, other major cryptocurrencies, such as Ethereum (ETH), Solana (SOL), and XRP were hit harder, witnessing price declines of over 7%, 12%, and 7.5%, respectively, in the past 24 hours. Meanwhile, BTC is currently trading near the $81,750 level, and due to the loss of support, it has gained massive attention from traders and investors, leading to an 85% surge in trading volume.
18,930 BTC Sell-Off by Short-Term Holders
Following this massive price decline and the bearish shift in market sentiment, short-term holders have been shaken. Recently, a prominent crypto expert shared a post on X (formerly Twitter) stating that short-term holders sold 18,930 BTC last night, immediately after the tariff announcement.
This massive sell-off by short-term holders indicates that BTC may experience a price crash in the near term.
