Bitcoin slipped back below the $100,000 threshold on February 4, as renewed concerns over global trade tensions halted a swift recovery.
BTC Price Rally Stalls Amid Tariff Uncertainty
Data from TradingView revealed that BTC/USD retraced approximately 3% after the daily open, reversing part of its recent gains.
Optimism had initially surged following reports that U.S. tariffs on Mexico and Canada would be postponed for a month. Additionally, President Donald Trump signed an executive order establishing a groundbreaking sovereign wealth fund, fueling market excitement.
At 2:30 p.m. Eastern Time, White House cryptocurrency director David Sacks is set to hold a press briefing to outline the administration’s digital asset policy.
“The Trump administration is looking to solidify the U.S. as a global leader in digital assets,” trader Jelle commented on X, anticipating a pivotal day for the crypto industry.
After dipping to around $91,500, Bitcoin quickly rebounded, gaining more than $10,000 in a single daily candle.
However, the momentum was short-lived as reports surfaced that China had introduced retaliatory tariffs on U.S. exports, including oil and coal.
“Looks like another turbulent day ahead,” Jelle added.
Well-known trader and analyst Michaël van de Poppe echoed the sentiment, forecasting continued volatility.
“Bitcoin is recovering fast and holding within its range,” he noted while sharing a daily price chart. “I expect new all-time highs in February. It’s natural to see corrections after a sharp move up. As long as BTC remains above $93K, new highs are within reach.”
Meanwhile, trader Phoenix suggested that Bitcoin could establish a fresh short-term range given the increased volatility.
“After such a big event, it makes sense for a new range to form,” he observed.
Funding Rates Signal Strength in Bitcoin’s Bull Run
On-chain data added another bullish indicator to Bitcoin’s outlook, according to Axel Adler Jr., a contributor to CryptoQuant.
Adler pointed out that funding rates across derivatives markets had flashed a key bullish signal during Bitcoin’s climb toward $90,000.
“This marks the seventh time this year that Bitcoin’s funding rate has gone negative,” he explained, noting that the first occurrence was in April 2024.
“Each of the six previous instances preceded bullish momentum.”
Just a day earlier, Bitcoin’s relative strength index (RSI) had also triggered a rare upside signal on shorter timeframes, adding to the growing list of positive technical indicators.
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