Key Takeaways:Bitcoin price holds around $106,913 but risks wicks below key $100,000 support amid renewed U.S.-China trade tensions.Tariffs on Chinese goods raised to 55%, sparking fears across crypto and traditional markets.Analysts point to the 2025 yearly open and $100K as critical support, with major liquidity stacked between $111K–$120K.Bitcoin Faces Key Test Near $100K After Tariff ShockBitcoin is consolidating near $106,913, just below its all-time highs, after pulling back in response to an unexpected twist in U.S.-China trade negotiations. The so-called "trade deal" includes 55% tariffs on Chinese imports, up from the previous 30% level — a move that surprised markets despite recent positive inflation data.According to analysts, this development may now weigh more heavily on short-term price action than the latest CPI report.Tariff Increase Sparks Market Anxiety Despite Cooling InflationDespite CPI coming in below expectations — 2.4% YoY vs. 2.5% forecast — the news of escalating tariffs appears to have dampened investor enthusiasm across both traditional finance (TradFi) and crypto markets.“Even with a relatively positive economic report... markets were slightly down,” noted Keith Alan, co-founder of Material Indicators.“A 55% tariff is going to be felt throughout every aspect of the U.S. economy and it isn’t going to feel good.”$100K and 2025 Yearly Open Mark Critical Support ZonesAnalysts are now focusing on two major support levels:The $100,000 psychological level, which is key for maintaining sentiment.The 2025 yearly open, a technical line in the sand for bulls, according to Alan.Alan emphasized that avoiding price wicks below $100K is essential to confirm it as strong support.“Consolidation above $100K with no wicks below will validate the resistance-to-support (R/S) flip and create long-term structural support,” he said.Order Book Data Shows Bullish Structure Above $111KData from Material Indicators' FireCharts reveals heavy ask-side liquidity building from $111,000 to $120,000, while bid-side liquidity below current prices remains limited. This suggests market makers and whales are still preparing for a breakout — but only if key levels hold.“I don’t expect the bottom to drop out,” Alan added. “Support tests are healthy.”Outlook: $100K Must Hold to Sustain the Bull CycleBitcoin’s consolidation below its $112,000 all-time high is not unusual, but the $100K level now serves as a psychological and structural pivot. Failing to hold above it with clean candles (i.e., no wicks) could invite bearish pressure, while holding it could fuel the next leg up.Bitcoin is navigating a delicate moment as macroeconomic optimism is tempered by geopolitical tension. With the price hovering near $106,913, the $100K zone is now the key battleground. If bulls can defend it convincingly, long-term momentum remains intact. But a breakdown could change the structure of this cycle — and shift sentiment heading into Q3, according to Cointelegraph.
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