Bitcoin (BTCUSD) is down sharply over concerns about the potential impacts of U.S. tariffs imposed on pro🌟ducts coming fro💖m Canada, Mexico and China.

The price decline follows President Donald Trump’s announcement on Saturday that the U.S. will impose 25% tariffs on Mexican and most Canadian imports, and 10% on all goods from China, starting on Tuesday. Investors see tariffs as inflationary, which could 澳洲幸运5官方✅开奖结果体彩网:keep꧋ the Fed from cutting rates this year, thereby putting downward pressure on non-interest-bearing assets l💎ike bitcoin.

Since setting its record high last month, bitcoin has slumped about 15%, with the cryptocurrency logging its third consecutive down day on Sunday and hitting a three-week low. However, it still trades about 35% higher since the early-November U.S. election on expectations of a possible strategic bitcoin reserve and a more favorable 澳洲幸运5官方开奖结果体彩网:regulatory outlook under a crypt🌄o-friendly White💛 House and Congress.

Below, we take a closer look at bitcoin’s chart and apply 澳洲幸运5官方开奖结果体彩网:technical analysis to identify crucial price levels to watch outꦐ for๊.

Potential Double Top

Bitcoin’s price has carved out two peaks around the same level between December and January, potentially forming a 澳洲幸运5官方开奖结果体彩网:double top, a classic chart pattern that signals a downside reversal.

Furthermore, as the cryptocurrency made a slightly higher high last month, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) made a relatively shallower peak to create a bearish 澳洲幸运5官方开奖结果体彩网:divergence between the price and ind𒐪ic𝓡ator, pointing to waning buying momentum.

Let’s identify three crucial levels where bitcoin’s price may attract support and also point out a key overhead area to watch duriꩲng possible upswings.

Crucial Support Levels to Monitor

The first level to monitor sits around $92,000. This area provides a 澳洲幸运5官方开奖结果体彩网:confluence of support from an uptrend line stretching b꧃ack to last year’s September low and a range of similar price points on the chart between November and January. The price fell below this key level late on Sunday, but has since reclaimed the area, trading around $96,000 Monday morning.

Further downside could see a decline to the $87,000 level, a location where the digital currency may encounter support near the bottom of a 澳洲幸运5官方开奖结果体彩网:pennant pattern♑ that formed on the chart following the cryptocurrency’s initial post-election pop.

A decisive 澳洲幸运5官方开奖结果体彩网:breakdown below this level would set the stage for a larger drop to around $74,000. Investors who favor 澳洲幸运5官方开奖结果体彩网:buy-and-hold strategies may look for 澳洲幸运5官方开奖结果体彩网:entry points in this region near the prominent March 2024 high, which also closely aligns with the late-ꦜOctober peak.

Key Overhead Area to Watch

During upswings, investors should keep a close eye on the $106,000 area. This location is likely to attract significant attention near the December and January peaks. A convincing volume-backed breakout above this key technical level would invalidate a do𝓰uble top pattern and could see bitcoin continue its longer-term uptrend.

UPDATE: This article has been updated after initial publication with recent bitcoin price information.

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