Bitcoin Weekly Outlook: Will Geopolitical Tensions Lead to a $75K Reversal or Spark a Bullish Rebound to $90K?
Bitcoin remains in the midst of turbulent waters as tensions over geopolitics, such as Trump’s escalating trade war against Canada, loom large over the supportive effects of easing U.S. inflation data. Though up a moderate 5% on the week, BTC remains susceptible to reversing lower towards $75,000, particularly given decreasing market volumes and ongoing ETF outflows. Though technical indicators imply bearish pressure, future macro events like the potential Fed rate pause and enhancing Russia-Ukraine ceasefire chances might revive bullish momentum. As market sentiment remains suspended, traders eagerly await whether Bitcoin will recover to $90,000 or encounter a further correction in the week ahead. KEY LOOKOUTS • A possible Fed rate hold next week would be a positive for crypto market sentiment and propel new inflows into Bitcoin and digital assets. • Rising US-Canada trade war tensions and worldwide tensions will likely remain a drag on retail investor sentiment, adding to the downside risk for Bitcoin. • Persistent Bitcoin ETF outflows confirm weak institutional sentiment; look for a reversal as the catalyst for bearish momentum. • Parabolic SAR and constricting Bollinger Bands suggest buildup in volatility—BTC’s next step may be quick, either to $75K or $90K. Bitcoin enters a make-or-break period as counterbalancing macroeconomic and geopolitical factors still drive its price direction. Although relenting U.S. inflation and impending Fed rate standstill hold promise for bullish momentum, the US-Canada trade war and entrenched ETF outflows bring investor mood into question. Technical indicators such as the Parabolic SAR and constricting Bollinger Bands indicate increased volatility in the future, with Bitcoin set for a significant breakout in either direction. While BTC hovers around $84,800, market players are divided—will the bulls take charge for a $90K breakout, or does a reversal to $75K await? Bitcoin is at a crossroads as loosening inflation feeds bullish expectations but trade war nerves and ETF selling increase the downside risks. As volatility signals pick up, BTC may swing drastically to $90K or plunge to $75K in the next few days. • Bitcoin price trades around $84,800, indicating a 5% weekly advance despite recent turmoil and macro pressures. • US-Canada trade tensions initiated by Trump’s tariff announcements are cooling retail investor sentiment and weakening market momentum. • Market volumes have fallen for the third consecutive week, enhancing the threat of a possible reversal in price to the $75,000 support level. • Parabolic SAR is still bearish, and narrowing Bollinger Bands point toward an upcoming breakout or breakdown in BTC’s price action. • Bitcoin ETFs experienced $830 million worth of outflows, following the pattern of stagnant institutional demand and contributing to near-term volatility. • Polymarket traders imply a 99% probability of a Fed pause, which, if realized, could be positively impacting crypto sentiment. • Geopolitical headlines and softening inflation readings will be among the most important variables determining the price direction of Bitcoin in the week to come. Bitcoin is still in the middle of world financial headlines as wider economic and geopolitical trends keep shaping investors’ moods. The softening of U.S. inflation figures recently was greeted with temporary relief, as everyone expected the Federal Reserve to ease its attitude. But then all attention moved on to intensifying tensions between the U.S. and Canada after former President Donald Trump revealed new trade tariffs. This evolution has provoked apprehensions within market players, dwarfing the encouraging optimism in the inflation news and promoting wariness across the cryptocurrency sector. BITCOIN Daily Price Chart Chart Source: TradingView Meanwhile, interest in Bitcoin remains buoyant, particularly as policy considerations start gaining prominence. In the United States, legislative efforts such as Florida’s bill to shield Trump’s Bitcoin reserve policy and Texas’s effort to invest in digital assets indicate an increased institutional interest in crypto integration. These actions show the changing function of Bitcoin both in state-level planning and in national economic strategy. As the crypto space continues to mature, these kinds of developments might have a substantial impact on long-term adoption and sentiment of Bitcoin beyond price action. TECHNICAL ANALYSIS Bitcoin is now displaying signs of consolidation in a tight range, which reflects market indecision. The price has fluctuated between major levels, implying that traders are waiting for a definitive breakout or breakdown before deciding on a direction. The Parabolic SAR also continues to indicate bearish momentum, and the constricting of Bollinger Bands shows decreasing volatility and a possible sharp move in the future. This accumulation usually leads to large price action, and traders are keenly waiting for a breakout that will set the tone for the upcoming trend—whether bullish or bearish. FORECAST If macro sentiment continues to strengthen, particularly in light of an affirmed Fed rate hold and abating geopolitical concerns, Bitcoin can potentially re-take bullish control. Favorable trends like resumed institutional investment interest, possible investment into Bitcoin ETFs, and positive regulatory measures by states including Florida and Texas might also provide a further thrust upward. If that were the case, BTC might challenge still higher levels of resistance, and a short-term bounce toward $90,000 could be an achievable target. Conversely, if trade war tensions heighten or investor sentiment continues to deteriorate amid ongoing ETF outflows and dwindling trading volumes, Bitcoin might experience a downward correction. Weak retail participation and increasing macroeconomic uncertainty may push prices down to test significant support levels. Under a bearish scenario, BTC might drop into the $75,000 area, particularly if risk-off sentiment prevails across the overall financial markets.