Bitcoin Bulls Defend $100K Amid 55% China Tariff Shock
Markets weigh trade tensions as major support levels face new pressure
Wall Street Hesitates Despite Positive Economic Signals
Bitcoin (BTC) is navigating troubled waters, with $100,000 emerging as a critical price floor as traders brace for economic fallout from the U.S.-China trade deal. The agreement includes a 55% tariff on Chinese imports, a sharp increase from the prior 30% rate. The crypto market, which had responded positively to recent inflation data, paused its upward trajectory following the announcement.
At the time of writing, Bitcoin trades at $106,193, still below its all-time high of $112,000. Traders now closely watch whether BTC can avoid price wicks below $100K, a level that could define the next market direction.
Analyst Warns: Tariff Spike May Hurt Broader Economy
Keith Alan, co-founder of Material Indicators, interprets the 55% tariff not just as a geopolitical headline but as a market-moving economic catalyst.
“55% is going to be felt throughout every aspect of the U.S. economy and it isn’t going to feel good,” Alan noted.
Despite a “relatively positive economic report” and hints of a completed trade deal, both traditional finance (TradFi) and crypto markets turned slightly red. Alan believes investor unease stems from the unexpected tariff jump.
Support at $100K and 2025 Yearly Open Crucial
Alan identifies the 2025 yearly open as a technical “line in the sand” for Bitcoin bulls. Any move below could shift momentum in favor of sellers, though he does not expect a major collapse due to lingering bullish momentum.
“Support tests are healthy,” he says, adding, “Support at the 2025 Yearly Open is my line in the sand.”
Order Books Reveal Major Liquidity Wall at $120K
Material Indicators’ FireCharts show heavy ask-side liquidity stacked between $111,000 and $120,000, suggesting sellers are ready to engage as Bitcoin approaches new highs. On the flip side, bid liquidity is notably thinner below current levels, increasing the risk of sudden drops if support breaks.
“When in doubt, zoom out,” Alan summarized. The broader view remains constructive for BTC, even amid short-term turbulence.
$100K Flip Still Central to Market Psychology
Alan also reflected on past price behavior:
“As I stated back in December when Bitcoin first started flirting with $100K, it will be important to see some consolidation above $100K with no wicks below to validate the R/S Flip.”
This “resistance to support” flip could define long-term structural support, even serving as a key defense in the next bear market.
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