Bitcoin Dips Past $107,500 After Trump’s Tariff Announcement Triggers Market Sell-Off

Bitcoin Dips Below $107,500 Amid Trump’s EU Tariff Threat, Triggering Market Sell-Off

Bitcoin came under pressure after former President Trump’s warning of new tariffs on the European Union sent shockwaves through the markets. The cryptocurrency broke below key support levels, sparking increased volatility around the $107,000 mark.

Strong volume-backed resistance formed near $108,300, while buyers attempted to hold the line between $106,700 and $107,000.

A brief surge lifted Bitcoin from $107,373 to $107,671 between 13:06 and 13:36, but this momentum quickly faded, leading to a sharp pullback.

Currently, Bitcoin is trading inside a tight compression zone, caught between two significant fair value gaps that will dictate its next move.

If bulls manage to reclaim territory between $109,000 and $110,000, Bitcoin could test resistance above $112,000. Conversely, a breakdown below $107,000 could see the price targeting liquidity near $106,000.

Technical Summary:

Heavy selling volume of 16,335 BTC during late trading on May 24 established a strong resistance level at $108,300.
Buyers showed resilience early on May 25, defending support around $106,700 to $107,000, though price action has largely been consolidative near $107,500.
The technical setup suggests short-term bearishness with ongoing sideways movement before a clearer trend emerges.
A notable volume spike coincided with a $150 price jump at 13:35, forming temporary resistance at $107,630.
Support near $107,400 was tested late in the session, but the overall trend remains a correction from the recent $109,239 peak.