Bitcoin bull trap? Watch these BTC price levels as BTC price risks $90K retrace

Crypto prices remained highly volatile on Feb. 4, with Bitcoin (BTC) briefly reclaiming the $100,000 level after US President Donald Trump paused Canada and Mexico tariff threats. 

However, the relief rally was short-lived as China announced retaliatory tariffs on US products, including a 15% tariff on coal and liquefied natural gas and an additional 10% on crude oil, agricultural machinery and certain vehicles.

This news sent Bitcoin price back to $98,000 as fresh trade war fears dampened renewed bullish sentiment.

Related: Trump’s trade war will send BTC price ‘violently higher’ — analyst

Let’s look at some key levels to watch in the short term as the BTC market reacts to the Trump trade wars.

Bitcoin price “golden zone” extends toward $90,000

In a repeat of the move, which followed its previous all-time high above $108,000 last month, Bitcoin crashed toward the $90,000 zone on Feb. 3.

This is the critical level that is being closely watched by traders and one that has received several retests since Nov. 18.

Popular trader George said the current Bitcoin market setup provides two possible scenarios.

It depends on whether “you think the low is in or not,” he asserted in a Feb. 4 post on X.

He said the optimal trade entry (OTE) area is between $93,000 and $95,000 should the immediate support levels hold.

If this level doesn’t hold, keep your “eyes on all the lows below and look for another big spike below there before you buy,” George added. 

“I think we have a low in for a while, but think we’ll need some more ranging the first few weeks of February, and could see expansion higher later this month.”

Using Fibonacci retracement levels, fellow analyst Mark Cullen highlighted several support levels that could come into play.

Cullen said that the week open around the 38.2% Fibonacci retracement level at $98,000 is a “good spot for a shallow retrace and continuation.”

However, the analyst said they spotted a “bullish order block and the golden zone” around $95,000. 

“If $BTC wants to shake out late longs, this is another spot I would look for.”

Meanwhile, MN Capital founder Michael van de Poppe believes Bitcoin could see a new all-time high in February if the price holds above $93,000.

“I assume we’ll see new ATHs in February and it’s quite normal to correct after such a strong bounce. ”

Bitcoin price must hold above $97K

Analyzing Bitcoin’s realized price distribution (URPD) can help determine where the current set of unspent transaction outputs, or UTXOs, were created. This gives an insight into the cost basis and areas of interest regarding support and resistance.

Some of the key Bitcoin support levels to watch are $97,500, $96,450, and $94,300, according to the Glassnode chart below.

On the other hand, critical resistance points for BTC stand at $100,780 and $101,867.

Bitcoin’s immediate support just above $97,000 is especially important, according to the Bitcoin liquidation heatmap from CoinGlass.

A wall of bid liquidity is building above this level, suggesting that a retest of support and a liquidity grab here is becoming increasingly likely in the short term.

As Cointelegraph reported, derivatives data suggests that the bottom is likely in, but investors’ fears could limit a recovery beyond $100,000 for the time being.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.