Crypto Market Dips Again As China Hits Back on the U.S. Where Will Bitcoin and Solana Go Next?

On Friday, the crypto market recorded its biggest 24-hour liquidation in history, $19 billion, as U.S. President Donald Trump announced that he would impose a 100% tariff on imports from China. The crypto market attempted a comeback to start the new week, but even that has been cut short.

The crypto market is once again facing another major decline, as China unleashes sweeping export controls. As China vows “corresponding measures,” trade tensions have reignited, causing the crypto market to experience yet another major drop and liquidation.

The Bitcoin price has tumbled to the $110,000 range, while Solana struggles under $200. With the mounting bearish macroeconomic factors, analysts are divided concerning where the Bitcoin and Solana prices could go next.

How Will Bitcoin Hold Up As Selling Pressure Builds?

To start this week, the Bitcoin price recovered from the weekend’s low of $109,000 to retest the resistance level at $116,000. However, with the trade tensions rising, the Bitcoin price has once again dropped to retest the $110,000 support level.

The price drop also comes with a buildup of selling pressure. For example, the DeFi researcher, 0xNobler, has reported that BlackRock has sold 8,670 BTC worth over $1 billion ahead of the Fed Chair speech today. Also, the whale that went short on Bitcoin before its weekend dip has also opened another $500 million short position.

These events reflect a broader sentiment across the market, with the huge price swings recorded over the last few days. Analysts are also divided as to where the Bitcoin price could go next. Ted Pillows explains that Bitcoin has a small liquidity cluster around the $107-109k level and a bigger one around $116-120k.

He expects the Bitcoin price to drop to the lower range to sweep liquidity before any uptrend can happen. Ash Crypto shares a similar sentiment, noting that the Bitcoin price has to drop lower to fill a liquidity gap before it can experience a trend reversal.

Solana (SOL) Flash Mixed Signal After Recent Drop

Before the crash, Solana (SOL) was building a bit of bullish momentum. However, the market crash has pushed the Solana price from a weekly high of $235 to trade under the $200 resistance. And now, Solana presents conflicting signals across different timeframes.

According to TradingView’s aggregate of technical indicators, Solana is flashing sell to strong sell signals on the daily and 4H timeframes. However, on the 1D and 1W timeframes, Solana has retained much of its bullish strength. 

For the Solana price to resume any significant uptrend, it must first reclaim the support level at $200. AltcoinGordon has shared a similar sentiment, noting that Solana has bounced off perfectly from a major support.

If Solana successfully reclaims $200, it will target its next major resistance level at $250. The technical analyst, Kyledoops, adds that there has been a massive inflow of funds into Solana, which suggests that top investors could be getting ready for the move. 

In Summary

The recent market crashes show how much macroeconomic events can affect the prices of cryptocurrencies. For Bitcoin, a further drop is expected before a major rally can happen, while Solana could experience its breakout rally if it reclaims the support level at $200.