BTC BREAKING NEWS OR BREAKING CHARTS?📰 BREAKING NEWS OR BREAKING CHARTS?
TRUMP IMPOSES TARIFFS, CAUSING A BITCOIN BLOODBATH — $20,000 DRAWDOWN IN 2 HOURS!
Bitcoin was sitting comfortably at $121,000, before a sudden macro shock — triggered by newly imposed U.S. tariffs — sent prices spiraling down to $100,000 in a matter of hours.
Bulls were liquidated. Bears rejoiced.
Now, the market stands at a crossroads: will this become a major dump continuation, or the foundation for a secret pump?
Chart Overview & Structure
On the high timeframe, BTC continues to trade within a rising wedge formation, with price now showing a significant wick rejection from the upper boundary. This move suggests a potential shift in market structure — a moment that’s likely to shake inexperienced traders. The chart reveals a clear supply and demand structure:
Supply Zone: $123,452 – $130,000
D emand Zone: $98,826 – $101,400
These zones define the battlefield between bulls and bears. In addition, eight psychological levels dominate the chart — $100K, $105K, $110K, $115K, $120K, $125K, and $130K — each representing potential liquidity clusters and reaction points.
Adding to the complexity, we can see a golden pocket (0.618–0.65 retracement) forming around $106,000, perfectly aligning with prior swing lows and the midpoint of a large Fair Value Gap (FVG) overhead. This zone could serve as a reversal or continuation point depending on whether price can reclaim and hold above the major support trendline.
Technical Insights
The market has now tapped the rising wedge resistance three times, with the last tap forming a wick above $125K, triggering liquidity before the sharp collapse. This aligns with the classical exhaustion behavior of wedges. Moreover, a potential Head and Shoulders structure is beginning to emerge, with the right shoulder aligning near $115K — a confluence area that may attract strong bearish attention.
For now, price is testing the lower support trendline — a crucial pivot area for determining whether BTC continues to break down toward demand or consolidates for recovery. This structure creates a make-or-break zone that will define the next macro leg.
Bullish Scenario
Despite the panic, this could be a classic liquidity flush — a “flush candle” event designed to wipe out leveraged long positions before a larger move upward. If BTC can maintain structure above the major support line and close above $106K–$110K, it opens the door for a relief rally.
A reclaim of $115K would confirm buyer strength.
Sustained momentum could push BTC back into the $120K–$125K range to retest the broken supply zone.
Breaking through $125K would invalidate the bearish wedge, potentially igniting a run toward $130K+ and even new highs in “Pump-tober.”
In this scenario, the deep liquidation event becomes fuel for a massive short squeeze, driving momentum and reigniting bullish sentiment across crypto markets.
Bearish Scenario
On the flip side, if BTC fails to hold above $106K or decisively breaks below the demand zone at $98K, it would confirm a rising wedge breakdown.
Below $100K, momentum could accelerate toward $95K–$92K — the next liquidity pools and volume gaps.
The Head and Shoulders completion would confirm the bearish reversal structure, further strengthening the downside case.
Macro sentiment, fueled by geopolitical and policy fears, could add weight to the bearish outlook.
A rejection from $115K without sustained reclaim would also reinforce the bearish continuation pattern, with every psychological level above turning into resistance.
Summary
Bitcoin is at an inflection point — the $100K–$115K range will define the next macro move.
The recent wick and structure breakdown hint at weakness, but the flush candle and liquidity sweep also suggest that a bullish rebound could be on the horizon.
In short:
Above $115K → Bullish continuation possible.
Below $100K → Bearish expansion likely.
With volatility at its peak, traders should expect massive liquidity hunts, fakeouts, and emotional traps on both sides.
Whether this becomes the start of a macro correction or a secret accumulation phase before a major pump — the next few daily closes will tell the story.
