Bitcoin Plunges Below $100K Amidst Trade Tensions and Inflation Fears

Bitcoin's price has taken a hit in recent days, with the cryptocurrency dipping below $100,000 on Sunday. This decline comes amidst escalating trade tensions between the United States and its major trading partners, including Canada and Mexico. President Donald Trump's proposed tariffs on these countries have sparked retaliation, with Canada and Mexico imposing their own tariffs on the US.

The prospect of a renewed trade war and mass deportations of illegal immigrants has raised concerns about a potential spike in global inflation. This, in turn, has weighed on Bitcoin's price, as investors seek safer havens for their assets. The crypto market cap has fallen by over 3.50% and is currently at $3.37 trillion.

Analysts have offered differing views on Bitcoin's outlook. While some, like Kevin Capital, have suggested that the cryptocurrency could be in trouble due to a bearish pattern that led to a market crash during the last cycle, others have expressed optimism. For instance, another analyst has predicted that Bitcoin could rally to $117,000, while CobraVanguard has forecast a rally past $120,000.

Bitcoin has fallen for a third consecutive day, slipping below $100,000 during the current session. Despite the decline, bulls have managed to keep the price above this psychological level. However, selling pressure has intensified, and key indicators suggest a growing bearish sentiment. The Relative Strength Index (RSI) is below the neutral zone, and the Moving Average Convergence Divergence (MACD) indicates a downtrend.

If sellers retain control and Bitcoin closes below $100,000, we could see a further drop to $90,000. However, buyers are likely to make a concerted effort to push the price back above this level. The coming days will be crucial in determining the direction of Bitcoin's price action.