Bitcoin Drops 1.5% to $107,500 Amid Trump Tariff Threat

Bitcoin's recent price movements have been marked by significant volatility, with the cryptocurrency dropping below $107,500. This decline was triggered by the threat of new tariffs proposed by former U.S. President Donald Trump, which sent shockwaves through the crypto market and led to a widespread sell-off.

The correction in Bitcoin's price accelerated notably between 13:06 and 13:36, with a price surge from $107,373 to $107,671, followed by a sharp reversal. This volatility was particularly pronounced during the 13:35 minute candle, where Bitcoin jumped nearly $150 with exceptionally high volume, establishing temporary resistance around $107,630. However, support formed near $107,400, where buyers emerged during the final minutes of the period, though the overall technical structure suggests continued consolidation within the broader correction from the $109,239 high.

Technical analysis indicates that Bitcoin is currently trading within a compression zone, trapped between two major fair value gaps. This situation will determine the upcoming market direction. If bulls can reclaim the $109K to $110K area, the price could push toward resistance beyond $112K. Conversely, a break below $107,000 might test liquidity around $106K. The decline accelerated during the 22:00-23:00 hour on May 24th with exceptionally high volume, establishing a strong volume-based resistance near $108,300. Support has formed in the $106,700-$107,000 zone where buyers emerged during the 09:00-10:00 period on May 25th, though recovery attempts have been modest with price consolidating around $107,500.

The overall technical structure suggests a short-term bearish trend with potential for further consolidation before directional clarity emerges. The most substantial price movement occurred during the 13:35 minute candle where BTC jumped nearly $150 with exceptionally high volume, establishing temporary resistance around $107,630. Support formed near $107,400 where buyers emerged during the final minutes of the period, though the overall technical structure suggests continued consolidation within the broader correction from the $109,239 high.