Good heavens, what a tumult has befallen the realm of Bitcoin and its fellow cryptocurrencies! The markets, once so buoyant, have taken a most precipitous tumble, as the specter of a trade war between the United States and the European Union looms large. A staggering $864 million in liquidations has ensued, leaving traders in a state of most unbecoming distress. 😱💸

According to the chronicles of crypto.news, Bitcoin’s price plummeted from $95,419 to $92,284 during the early hours of Asian trade on Monday, a loss of 3% before finding a modicum of stability at $92,672. Other notables of the crypto world, such as Ethereum, BNB, XRP, and Solana, followed suit in this unfortunate descent, dragging the total crypto market cap down by 2.8% to $3.22 trillion. A most dismal affair, indeed! 😢📉

As this drama unfolded, over $864 million in liquidations occurred, with $783 million stemming from long positions. The data from CoinGlass reveals that the majority of these liquidations transpired within the past 12 hours, a testament to the fickle nature of market sentiment. Long liquidations, you see, occur when a price drop forces traders with bullish inclinations to sell their positions, leading to a self-perpetuating downward spiral. A most unfortunate cascade of events! 🌀💔

The root of this turmoil? Fear, dear reader, that a tariff war between the U.S. and the EU might escalate into a full-blown trade war. Mr. Trump, with his penchant for dramatic pronouncements, has threatened EU nations-Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland-with escalating tariffs unless they acquiesce to his demand to sell Greenland. A most audacious ultimatum, if ever there was one! 🗣️🌍

European leaders, naturally, have decried this as direct blackmail, warning that it could undermine transatlantic relations and the cohesion of the NATO alliance. The EU, ever prepared, is crafting retaliatory measures, including potential duties on 93 billion euros’ worth of American goods and the activation of their anti-coercion instrument. A game of high stakes, indeed! ⚔️🇪🇺

This geopolitical uncertainty has injected a fresh dose of volatility into an already fragile market sentiment, exacerbated by the delay in the Senate markup for the eagerly anticipated U.S. crypto market structure bill. With major industry players like Coinbase withdrawing their support, the Senate Banking Committee has postponed the hearing for the Digital Asset Market Clarity Act to an as-yet-undisclosed date. A most inconvenient turn of events! 📆🤦‍♂️

Adding to the bearish undertones, outflows have resumed across spot Bitcoin ETFs. Data from SoSoValue indicates that the 12 spot Bitcoin ETFs experienced $394.68 million in net outflows on Friday, Jan. 16, following a four-day winning streak that had drawn in $1.8 billion. A most perplexing reversal! 📉💰

Bitcoin Price Analysis

On the daily chart, Bitcoin’s price appears to be drawing near a key ascending trendline that has served as a support since late November. This trendline aligns with the 50-day simple moving average, forming a critical technical confluence level. Should Bitcoin breach this support, it might face a precipitous fall to the December 18 low of $84,500. Conversely, a rebound above the 50-day SMA could spark a relief rally toward the $98,000 resistance zone. A most delicate balance! ⚖️📈

However, momentum indicators such as the MACD and RSI suggest a bearish bias. The MACD line has formed a bearish crossover with the signal line, while the RSI has retreated toward the neutral line after touching overbought levels earlier last week. A most ominous sign, if one is inclined to pessimism! 😬📉

Read More

• EUR USD PREDICTION

• GBP CNY PREDICTION

• NEXO PREDICTION. NEXO cryptocurrency

• BTC PREDICTION. BTC cryptocurrency

• STX PREDICTION. STX cryptocurrency

• CNY JPY PREDICTION

• SOL PREDICTION. SOL cryptocurrency

• USD MYR PREDICTION

• GBP EUR PREDICTION

• Is XRP About to Soar or Crash? The $3.27 Dilemma Explained!

2026-01-19 11:27