Bitcoin holds above $108K as Trump raises tariffs

The cryptocurrency market was bearish on Monday, erasing some of the gains recorded over the weekend. Bitcoin slipped to the $107,500 region on Monday but has now recovered and currently trades above $108k. 

Institutional demand continues to be Bitcoin’s primary driver and could empower it to rally higher over the coming days and weeks.

Bitcoin stays above $108k despite renewed tariff talks

It’s the start of the new week, and tariff talks are back. On Monday, President Trump announced that the United States has set a 25% tariff against South Korea and Japan starting August 1.

The president also revealed a 25% levy against Kazakhstan and Malaysia, 30% against South Africa, and 40% for Myanmar and Laos.

Furthermore, Trump threatened additional tariffs on countries aligning with the policies of the BRICS. The announcement saw Bitcoin briefly drop below $108k, but the leading cryptocurrency has since bounced back and could rally higher soon.

Bitcoin’s resilience can be attributed to increasing institutional demand. On Monday, Japanese firm Metaplanet added over 2k bitcoins to its balance sheet for $239 million. Furthermore, recent data by SoSoValue revealed that US-listed spot Bitcoin Exchange Traded Funds (ETFs) recorded over $769 million in inflows last week. These figures suggest that institutional investors continue to demand Bitcoin, and this could be a catalyst for a price surge in the medium to long term.

Bitcoin price forecast; technical strength hints at new highs

The BTC/USD 4-hour chart remains bullish as buyers remain in control. The pair is also efficient, suggesting that liquidity on the downside has been swept and Bitcoin could be preparing for another leg up.

At press time, Bitcoin is trading at $108,040, down by less than 1% in the last 24 hours. The Relative Strength Index (RSI) of 52 indicates that Bitcoin could experience buying pressure soon, while the MACD lines are still within the positive territory.

BTC seems to be currently consolidating tightly around $110,000, just beneath overhead resistance.

A decisive move above the all-time high price of $111k in the short term could see Bitcoin target $120k, setting a new all-time high in the process.

Analysts still expect Bitcoin to touch $150k in this cycle, and this could be possible if BTC breaks out and hits $120k. 

However, failure to break out from this consolidation area could see Bitcoin retest the support and Transactional Liquidity (TLQ) level at $105,328. This level could serve as a springboard for Bitcoin to rally higher.

However, if the bulls fail to take advantage of this, BTC could drop to the next major support level at $98k.

Bitcoin’s short-term performance depends on institutional demand for the cryptocurrency. Furthermore, the renewed tariff talks could play a significant role in how the broader crypto market performs over the next few weeks.

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