Image Source: Unsplash
 

The cryptocurrency market began the new week bearish, with Bitcoin and other leading coins currently in the red. 

Bitcoin dipped to the $92k level, while Ether is currently trading below $3,200. The bearish performance saw over $870 million worth of liquidations in the last 24 hours, with long positions suffering most of the losses. 
 

Trade tensions between the EU and US causes market to turn bearish

The cryptocurrency market has wiped out over $200 billion in the last 24 hours amid ongoing geopolitical frictions between the United States and the European Union (EU). 

The rift has seen Bitcoin’s price drop below the $93k level, while major altcoins such as Ethereum (ETH), Solana (SOL), and Cardano (ADA) followed BTC’s lead. 

BTC’s dip came after US President Donald Trump said he would slap tariffs on eight European nations that have opposed his plan to take Greenland.

The president announced a 10% tariff on goods from countries including Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom (UK), and Norway, starting on February 1. He added that the tariffs will be in place until the United States is allowed to buy Greenland. 

In retaliation, EU countries are considering imposing €93 billion ($101 billion) in tariffs on the US.

They could also restrict American companies’ access to the bloc’s market in response to Donald Trump’s threats.

The trade tensions between the United States and the EU triggered risk-off sentiment among traders, resulting in billions of dollars wiped out from the market. 

The bearish performance triggered a wave of liquidations across the market, erasing over $870 million in leveraged positions. 

According to CoinGlass, $787 million worth of long positions were liquidated in the last 24 hours, with only $83 million worth of short positions affected.

The largest single liquidation occurred on Hyperliquid, where a BTCUSDT position worth $25.83 million was liquidated.

The Fear and Greed Index in the market has also dropped to 45 from Thursday’s high of 61, indicating a shift in sentiment among traders. 
 

BTC eyes $95k as technical indicators remain bullish

The BTC/USD 4-hour chart remains bullish and efficient despite the loss recorded in the last few hours.

The technical indicators remain bullish, suggesting that Bitcoin’s price could recover soon.

The MACD lines are still above the neutral zone, indicating that the buyers are still in control.

However, the 4-hour RSI has dropped to 49, below the neutral level, suggesting a shift in market sentiment.
 

(Click on image to enlarge)

With a swing low created at $92k, Bitcoin’s price could recover soon.

If the bulls regain control, BTC could rally towards the first major resistance level at $95,429. An extended bullish run would see BTC hit the $98k level for the second time in a week.

However, if the recovery fails, BTC could test the January 12 low of $89,633. Failure to defend this level would bring the December 31 support of $87,147 into focus.

More By This Author: