Bitcoin has recovered some losses after a sharp downturn triggered by U.S. tariffs on China, with the cryptocurrency trading around $115,000 to $116,000 on Monday. The sell-off led to a record $19 billion in market liquidations over the weekend. President Donald Trump's reassuring comments on Sunday helped ease fears of escalating trade conflicts.
Bitcoin experienced a steep decline on Friday, dropping below $110,000 and reaching a low of about $107,000. This movement followed President Donald Trump's announcement of new severe tariffs on China, heightening concerns over trade tensions between the world's two largest economies. The broader cryptocurrency market suffered a record liquidation event, with total losses amounting to $19 billion.
By Sunday, Trump stated that "it will all be fine" with China, which contributed to the rebound. On Monday, Bitcoin was trading at $116,000 in late-afternoon sessions, according to Investopedia, marking a recovery from Friday's low but still down approximately 8% from its record high of over $126,000 set a week earlier. Finance Magnates reported Bitcoin hitting $115,000 earlier that day, alongside gains in other cryptocurrencies: Ethereum rebounded to $4,157, XRP rose 7.4%, and Dogecoin jumped 10%.
Technically, Bitcoin's price retreat after surpassing a three-month trading range has raised the possibility of a rare triple top pattern. A bearish divergence appeared in the relative strength index during last Monday's higher high, signaling waning buying momentum. However, the price held above the 50-day moving average and the lower trendline of the trading range.
Investors are monitoring key support levels at $107,000, where the 200-day moving average and a trendline from December's peak converge, and $93,000, aligned with a trendline linking November to May peaks and troughs. Overhead resistance sits near $123,000, coinciding with July, August, and September highs and the trading range's upper trendline. A breakout could target $139,000, calculated by adding the $16,000 range width to the $123,000 level.