Bitcoin’s rally above $110,000 convinced traders that the bull market is unstoppable. But within just a few days, that confidence crumbled. A combination of global politics and technological weaknesses led to the steepest decline in months. New sanctions by the Chinese government on five U.S. subsidiaries of South Korea’s Hanwha Ocean have reignited trade tensions with the United States and spooked investors across stocks, commodities and cryptocurrencies. The timing couldn’t be worse for Bitcoin. ETF outflows are increasing, liquidity is thinning, and volatility is skyrocketing.
This fix is not random. That’s what happens when overextended technicals collide with macro storms. The chart is flashing early warnings of depletion, and if conditions continue to deteriorate, a further decline towards $90,000 or even $65,000 cannot be ruled out. Let’s figure out what’s going on.
Bitcoin News: Why is Bitcoin falling now?
Bitcoin price is rising due to global risk appetite. When investors feel confident, they chase yield. When fear takes over, they flee to safety. Chinese sanctions against Hanwha’s US unit The move comes as part of escalating trade tensions. The US and Chinese governments are currently attacking each other’s shipping industries with new fees and investigations. This is a signal to global markets that uncertainty is back.
As a result, traders are unwinding leverage and major companies are rotating capital away from volatile assets. The mood across the crypto desk has shifted from FOMO to defensiveness. Bitcoin’s closing price below $115,000 confirms that momentum is broken.
Bitcoin price prediction: What the charts tell us
Take a close look at the daily Heikin Ashi chart. Bitcoin is floating $113,000stuck below 20-day SMA, $116,652It is a line that once acted as strong support but is now acting as resistance. of bollinger bands is wide and pointing downwards, indicating that volatility remains high and sellers are still in control.
The important levels to note are: Lower band around $106,483. If the day’s closing price falls below this, selling may accelerate and BTC may rise. $102,000 – $98,000a cluster of support for: Below that is the psychological zone $90,000This coincides with the 50% retracement from the July breakout. Once panic selling begins, $65,000 becomes a potential capitulation zone. This is painful, but technically valid.
Meanwhile, the bull needs to be brought back $118,000 To regain confidence. A break above this could reset the short-term trend and pave the way for another rally. $125,000 – $127,000.
Bitcoin News: How is geopolitics shaping Bitcoin’s near-term future?
This is not just a chart story, this is a global story. Chinese government sanctions have unnerved the broader supply chain story. By targeting companies linked to the U.S. investigation, China has signaled that the economic standoff will not cool down anytime soon. Every conflict between the world’s two largest economies puts pressure on a thriving market seeking stability.
The correlation between Bitcoin and macro risks is increasing again. Investors who once called it “digital gold” are beginning to realize that it behaves more like a high-beta technology asset when global uncertainty increases. If trade tensions persist or escalate into financial regulation, ETF outflows could increase further in the coming weeks and selling pressure could continue.
Bitcoin Price Prediction: Could BTC Price Recover Soon?
Rebounding is possible, but not without a catalyst. Bitcoin needs either macro easing, like signs of easing tensions between the US and China, or a resurgence in ETF inflows to rebuild momentum. From a technical point of view, $106,000 – $107,000 You need to hold the zone. Once this bottom is broken, the decline could enter a classic “washout” phase before long-term buyers re-enter the market.
If BTC price stabilizes above that support and exceeds it $118,000traders can start looking towards a recovery. $125,000 to $130,000 By late October. However, as volumes continue to contract and macro tensions increase; Under $95,000 It may arrive sooner than most expect.
Bitcoin’s recent decline is not the end of the bull market, but it is a serious reality check. The perfect storm of chart overheating, profit-taking, and geopolitical tensions is forcing traders to reevaluate. The bias is bearish until BTC regains its short-term moving average.
To put it simply, $BTC is not crashing, it is being reset. However, if global markets remain volatile, a significant correction towards $90,000 or even $65,000 could be the next chapter in this cycle’s story. Smart traders don’t panic, they prepare.
📈 Want to trade Bitcoin?
Get started with Bitget today: Sign up here
Check the live BTC chart: BTC/USDT on Bitget
Or check out our cryptocurrency exchange comparison.
