24th May 2025 – (New York) Bitcoin’s price is hovering between $107,793 and $108,316 per unit over the last hour, reflecting a 1% drop compared to the previous trading session. With a market capitalisation of $2.19 trillion and a 24-hour trading volume of $38.79 billion, the cryptocurrency has seen significant intraday fluctuations, ranging from $107,367 to a recent high of $112,000.
Despite the pullback, bitcoin’s daily chart reflects a cautiously optimistic long-term outlook. The recent surge to $112,000 signals underlying bullish momentum. However, the appearance of a bearish engulfing candlestick pattern suggests potential short-term exhaustion. Notably, trading volume spiked during the rise to $112,000 but has since diminished, creating a divergence between price and volume — a common precursor to price corrections.
On the 4-hour chart, a mid-term downtrend is evident, characterised by lower highs and lower lows. Red volume bars further confirm active selling pressure. Analysts highlight $106,500 as a key short-term re-entry level, contingent on consolidation and reversal signals, such as a hammer candlestick or bullish engulfing pattern.
Bitcoin’s decline coincides with heightened market volatility following comments from US President Donald Trump regarding potential tariffs. Trump announced plans to impose a 25% tariff on iPhones manufactured outside the United States and a 50% tariff on European Union imports starting 1st June 2025.
The President criticised the EU for “unfair trade practices,” claiming, “The European Union has been very difficult to deal with… Their trade barriers and monetary manipulations have led to a trade deficit of over $250 billion annually.”
This announcement triggered a broader market reaction, with the S&P 500 and oil futures falling 1.6% and 0.9%, respectively, while gold climbed 1.5%. Bitcoin, which had recently reached an all-time high of $111,900, dropped sharply to $107,000.
On the 1-hour chart, bearish momentum is more pronounced, with a sharp sell-off pushing bitcoin below the $108,000 mark. A possible double-bottom formation or RSI divergence near the $105,500-$106,000 range could signal a reversal.
Technical indicators present a mixed picture. Oscillators such as the RSI (67) and ADX (35) remain neutral, while the Stochastic (87), CCI (140), and momentum indicators suggest a bearish bias. Conversely, the MACD (4,167) indicates underlying bullish momentum. Moving averages, including the EMA and SMA across all timeframes, continue to flash bullish signals, supporting a positive medium-to-long-term trend.
Bitcoin’s broader trend remains upward, supported by strong buy signals across key moving averages. If price action stabilises above $108,000 and reverses with bullish candlestick patterns or oscillator divergence, bitcoin could retest the $112,000 resistance and potentially set new highs.
Short-term bearish patterns, coupled with sell signals from oscillators, suggest a potential retracement. If bitcoin fails to maintain support above $108,000, it risks further declines toward the $105,000 level or lower. Traders are advised to exercise caution and await clear confirmation of support before entering long positions.
