After Trump announced a 100% tariff on China, the market has been melting. This dip feels like it’s lasting forever, especially when you watch your favorite altcoin bags shrink. How deep can this correction go? Let’s explore the possibilities together.
7 Days Heatmap
The 7-day crypto heatmap has been flashing red for two consecutive weeks. This week, BTC dropped by over 2.7%, dragging ETH down more than 11% and causing altcoins across the board to melt.
BTC Analysis
As per our previous BTC update, it has been falling sharply after rejecting the $125,000 round number.
This week, BTC is testing the $107,500 level, a major support and key checkpoint for the bulls.
As long as the $107,500 level holds, the bulls still have a chance to step in.
However, if $107,500 breaks to the downside, we can expect further bearish movement toward the $100,000 mark.
ETH Analysis
As per our latest ETH analysis, it has just broken below the $4,000 mark this week, opening the door for further downside toward the $3,500 support zone.
For the bulls to regain control and shift momentum in their favor, a daily candle close above the $4,100 level is required.
Meanwhile, as long as the $4,000 level holds as resistance, more pain can be expected for ETH and the broader altcoin market.
Quote of the week
Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions.
~ Jack Schwagger
Closing Remarks
In summary, the crypto market continues to bleed following Trump’s 100% tariff announcement on China, with BTC and ETH leading the decline.
BTC is currently retesting the crucial $107,500 support, a level that could determine whether the bulls can defend or if a deeper drop toward $100,000 is next.
ETH, on the other hand, has slipped below $4,000 and risks further downside toward $3,500 unless it reclaims $4,100 on a daily close. Until key supports hold, the overall market sentiment remains bearish.
