Bitcoin Dips on Political Tensions but Shows Resilience at Support Level

Despite persistent macroeconomic uncertainties such as rising U.S. bond yields and escalating geopolitical tensions, Bitcoin continues to demonstrate resilience. The recent high-profile clash between Elon Musk and Donald Trump stirred additional volatility, leading to a significant 5% decline in Bitcoin's price. The impact was vividly illustrated by a sharp decline in trader activity on Binance, with net taker volume dropping from $20 million to -$135 million within eight hours, marking the largest such decline in 2025. This suggests that traders are highly sensitive to political developments, reacting swiftly and risk-off. Bitcoin's rebound from around $100,000 to roughly $103,000 showcases underlying strength, especially as it defends key demand zones. The presence of critical resistance levels between $104,600 and $107,000 poses a challenge, and a successful close above these could signal a bullish continuation towards recent highs at $112,000. However, failure to sustain momentum might lead to further corrections. Market sentiment remains cautious due to macro risks, yet a convincing rebound could provoke short covering and potentially ignite a rally. The current price action reflects a tense battle between bulls and bears, with key support at $103,600 and resistance levels to watch. Ultimately, if Bitcoin can maintain above support and break through resistance, a positive trajectory could unfold, while failure to do so may suggest more downside beforehand.