Bitcoin Drops Below $107.5K as Trump Tariff Threat Triggers Crypto Sell-Off

Bitcoin's recent pullback has established strong volume-based resistance near $108,300, with support forming in the $106,700-$107,000 zone.

The correction accelerated with a notable price surge from $107,373 to $107,671 between 13:06-13:36, followed by a sharp reversal.

Technical analysis suggests Bitcoin is now trading within a compression zone, trapped between two major fair value gaps that will determine the upcoming market direction.

If bulls reclaim the $109K to $110K area, price could push toward resistance beyond $112K, while a break below $107,000 might test liquidity around $106K.

Technical Analysis Breakdown

• The decline accelerated during the 22:00-23:00 hour on May 24th with exceptionally high volume (16,335 $BTC), establishing a strong volume-based resistance near $108,300.
• Support has formed in the $106,700-$107,000 zone where buyers emerged during the 09:00-10:00 period on May 25th, though recovery attempts have been modest with price consolidating around $107,500.
• The overall technical structure suggests a short-term bearish trend with potential for further consolidation before directional clarity emerges.
• Bitcoin experienced significant volatility with a notable price surge from $107,373 to $107,671 between 13:06-13:36, followed by a sharp reversal that saw prices decline to $107,393 by 14:00.
• The most substantial price movement occurred during the 13:35 minute candle where $BTC jumped nearly $150 with exceptionally high volume (148.76 $BTC), establishing temporary resistance around $107,630.
• Support formed near $107,400 where buyers emerged during the final minutes of the period, though the overall technical structure suggests continued consolidation within the broader correction from the $109,239 high.

External References

• "Bitcoin Price Prediction for May 25: Will Bulls Defend $108K or Is a Deeper Drop Ahead?", Coin Edition, published May 24, 2025.
• "Why is Bitcoin Price Dropping Now? Will $BTC Price Go Down to $100K?", CoinPedia, published May 24, 2025.
• "Bitcoin Price Analysis: $BTC Displays Signs of Weakness Following New All-Time High", CryptoPotato, published May 25, 2025.