Bitcoin News Today: U.S.-EU Trade Tensions Escalate, Bitcoin Trapped Between $117,000 Support and $121,200 Resistance Amid Long-Short Tug-of-War

BlockBeats News reported that escalating trade tensions between the U.S. and EU have created a volatile macroeconomic backdrop for markets [1]. EU diplomats recently signaled support for counter-coercion measures if negotiations with the U.S. fail to resolve longstanding disputes. U.S. Treasury Secretary Janet Yellen countered by demanding an "Innovative Finance Arrangement" from the EU to reduce the 30% tariff—a proposal yet to be submitted by European authorities. This stalemate has deepened concerns about transatlantic trade frictions spilling into global financial markets [1].

Amid this uncertainty, Bitunix analysts highlighted Bitcoin’s (BTC) precarious position in a tug-of-war between long and short positions. BTC currently oscillates near $119,300, with the $120,800–$121,200 range identified as a critical liquidation zone. The analyst emphasized that this cluster of short-term long positions could exert downward pressure if breached. Immediate support is noted at $117,000, where a breakdown could trigger stop-loss selling and exacerbate bearish momentum. Conversely, a breakout above $121,800 might signal a short-term reversal in strength [1].

The analysis underscores a strategic trading range between $117,000 and $121,200, advising traders to adopt a “sell high, buy low” approach. However, the Bitunix team cautions against overexposure: if BTC falls below $116,500, observers are urged to monitor for liquidity risks rather than initiating new positions. The broader market remains anchored to macro policy developments and trade dynamics, necessitating flexible strategies [1].

Market participants are closely watching whether U.S.-EU negotiations yield progress. Failure to resolve these tensions could amplify macroeconomic risks, potentially spurring flight-to-safety flows into BTC or other assets. Meanwhile, technical indicators suggest a fragile equilibrium, with key levels acting as both barriers and catalysts. The analyst’s focus on breakout direction reflects the high-stakes nature of current positioning, where either side’s dominance could reshape near-term price action [1].

Sources:

[1] [title: Bitunix Analyst: US-EU Trade Tensions Unresolved, BTC Long vs Short Tug of War, Support at 117,000, Resistance at 121,200, Suggests Watching for Breakout Direction] [url: https://www.theblockbeats.info/en/flash/304288]