Bitcoin Faces Volatility After Trump’s 50% Tariff Announcement

Bitcoin is experiencing high volatility after a selloff triggered by US President Donald Trump's announcement of a 50% tariff on all EU imports starting June 1. This caused Bitcoin to drop from nearly $111,800 to around $107,500 within hours.

Current Price Structure

Lower fair value gap (FVG) identified at approximately $107,500, acting as a reaction point post-rally.
Upper FVG range between $109,800 and $110,700, previously a breakdown point now acting as resistance.
A deadlock scenario exists; breakout above or below these gaps will determine the next price movement.

Future moves will depend on volume confirmation, either bullish above resistance or bearish towards lower demand targets.

Price Scenarios

Bullish: A bounce at the lower FVG could push Bitcoin towards the upper FVG. Sustained movement above $110,700 may lead to potential new highs around $113,000.
Bearish: A clear break below $107,500 opens a path towards $106,000, with further downward movement potentially favoring sellers.

Currently, Bitcoin is trading at $107,017.