BTC Faces Sharp Correction After Rejection at $124K Resistance Zone
Bitcoin (BTC) fell sharply on Thursday, sliding to around $117,500 after failing to hold above a crucial resistance level near $124,000. The decline came shortly after renewed trade tensions between the U.S. and China, following statements from former U.S. President Donald Trump about potential tariff hikes should he return to office.
The remarks rattled global risk markets, sparking a selloff in equities and cryptocurrencies alike. Bitcoinâs 3.4% intraday drop marked its steepest decline in over two weeks, with traders quickly shifting to defensive positions.
Chart data shows Bitcoinâs rally stalled at a major supply zone near $123Kâ$124K, highlighted in red, triggering a reversal that sent prices back toward the $117Kâ$115K demand region. The green zone between $110K and $115K now stands as the next critical support.
According to market analysts, BTCâs rejection from the upper channel suggests a short-term correction rather than a complete trend reversal.
âThe market is reacting to macro headlines, but Bitcoinâs structure still remains bullish as long as it holds above $110,000,â said  BITX senior crypto desk. âHowever, losing that support could open the door for a retest of $100,000 in the coming weeks.â
Investors have grown cautious as renewed tariff threats fuel global uncertainty. Historically, trade disputes have increased volatility across risk assets, and Bitcoin often reacts sharply to such developments.
âWeâre seeing classic risk-off behavior,â noted  BITX digital asset strategist. âBitcoinâs pullback mirrors the reaction in tech equities, with traders de-risking amid fears of a renewed U.S.-China trade standoff.â
Despite the correction, Bitcoin remains up nearly 30% year-to-date. Traders emphasize that maintaining support above $115,000 could set the stage for a rebound toward $120,000â$122,000.
If global tensions ease, Bitcoin may quickly recover its footingâotherwise, the $110K zone could be the marketâs next battleground.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.