Bitcoin Shows Resilience Amid Market Liquidations and Trade Tensions
Despite ongoing trade disputes and a wave of liquidations shaking global markets, Bitcoin is demonstrating notable resilience, signaling underlying strength.
Bitcoin (BTC) was steady above $105,000 on Tuesday, recovering after a sell-off over the weekend and Monday that triggered nearly $1 billion in liquidations and unsettled traders.
Among major cryptocurrencies, Ether (ETH) led the gains with a 4.5% rise. The surge followed recent restructuring at the Ethereum Foundation, which refocused its team to prioritize protocol upgrades amid a fiercely competitive blockchain landscape, boosting optimism for the world’s second-largest token.
Dogecoin (DOGE) also climbed 3%, while Solana (SOL), Cardano (ADA), XRP, and Binance Coin (BNB) each added up to 2.5%. The broader CoinDesk 20 (CD20) index, which tracks the largest tokens by market capitalization, rose 2% overall.
After weeks of steady gains, Bitcoin’s price action has traders cautiously watching for signs of a potential pause or pullback. Technical indicators suggest that the rally might be nearing a point of fatigue.
“Bitcoin hovering near $105,000 reflects a natural cooling period following a strong rally,” said Ryan Lee, Chief Analyst at Bitget Research. “Elevated volumes paired with sustained interest now suggest some exhaustion.”
Lee expects Bitcoin to consolidate in a range between $103,000 and $108,000, with the $100,000 mark serving as a crucial psychological support level. He warned that a breach below this could open the door for further declines toward $97,000–$93,000.
On-chain data indicates continued accumulation by whales, which Lee sees as a bullish sign that any correction might provide attractive entry opportunities.
Regarding Ethereum, Lee pointed out hesitation near the $2,800 level, with repeated rejections and long upper wicks in price charts. “The overall strength remains intact, but momentum will stay capped unless ETH breaks decisively above $2,810,” he said.
From a macro perspective, Bitcoin’s outlook remains robust.
“Year-to-date, Bitcoin continues to outperform both traditional equities and many other assets,” said Augustine Fan, Head of Insights at SignalPlus. “However, we may face tougher times ahead in the short term, as seasoned investors take profits while mainstream buyers remain active.”
Geopolitical tensions, especially ongoing U.S.-China trade disputes and looming tariff decisions, continue to weigh on market sentiment. Traders are bracing for increased volatility ahead of key policy deadlines in early July, according to Singapore-based QCP Capital.
For now, Bitcoin is holding firm, maintaining its position at the “top of the pecking order,” the firm concluded.
