Bitcoin dipped toward the crucial $90K support level amid tariff concerns, but its near-term outlook could be more optimistic than it appears

Bitcoin dropped below the key psychological support of $100K, hitting its lowest level in nearly three weeks and once again testing the critical $90K support zone, which serves as the floor of a broader consolidation range.

The leading cryptocurrency has remained under pressure since reaching a record high following President Trump’s inauguration on January 20, with losses accelerating after the announcement of new trade tariffs over the weekend.

Market panic followed Trump’s decision, triggering a flight from riskier assets and driving Bitcoin sharply lower, despite closing January with its first-ever monthly finish above $100K.

The renewed test of the $90K support level has made traders more cautious, even as Bitcoin rebounded from Monday’s low of $91,054. The downside remains vulnerable while prices stay below $100K, with bearish daily indicators such as a Tenkan/Kijun-sen bearish crossover and weakening momentum.

However, escalating concerns about trade wars destabilizing the global economy may encourage investors to turn to digital assets as alternative safe havens, given their detachment from traditional markets.

Additionally, President Trump’s commitment to further liberalizing crypto markets could provide strong support, as overall bullish sentiment remains tied to such policy expectations.

Traders are expected to stay cautious while Bitcoin trades below $100K, though many anticipate limited dips—likely finding support at $90K—as opportunities to buy at better levels.

A sustained break above $100K, confirmed by a move beyond the 20DMA at $102,600, would be required to negate downside risks and shift the near-term outlook back to bullish.

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