Bitcoin Faces Pressure As Trade War Tensions Rise – Is A Bigger Drawdown Coming?

Bitcoin faced a massive selling event yesterday as U.S. trade war fears triggered a sharp market-wide decline. The uncertainty surrounding global economic conditions caused panic selling, driving BTC and many altcoins significantly lower. Investors are on edge as the market attempts to find stability after one of the most volatile sessions of the year.

Top analyst Axel Adler shared an analysis on X, revealing that Bitcoin is reacting strongly to escalating trade war tensions. According to his data, BTC’s max drawdown last quarter was -17%, while the current drawdown sits at -16%, signaling that BTC is approaching a critical point. If selling pressure persists, BTC could face a deeper correction before finding solid support.

This sudden shift in market sentiment highlights how macroeconomic factors continue to play a crucial role in Bitcoin’s price action. While long-term fundamentals remain intact, short-term volatility remains a challenge for investors. Analysts are now watching key support levels closely to determine whether BTC can stabilize or if further downside is on the horizon. The coming days will be crucial in assessing whether BTC can reclaim momentum or if this selloff marks the beginning of a prolonged consolidation phase.

Bitcoin Faces Volatility During Bull Market

Bitcoin is trading at key demand levels around the $95K mark after losing the crucial $100K level. Yesterday’s market-wide selloff triggered by U.S. trade war fears caused a sharp 10% drop in less than 24 hours, shaking investor confidence. The market remains highly uncertain, and this week could see further declines as selling pressure continues.

Key metrics shared by Axel Adler on X reveal that Bitcoin is reacting strongly to escalating global trade war tensions. According to his analysis, Bitcoin’s max drawdown last quarter was -17%, while the current drawdown sits at -16%, reflecting the extreme volatility dominating the market. These levels indicate that BTC is now approaching a crucial phase, where a further dip could test lower support zones.