Bitcoin Price Prediction for Feb 5th: Should You Hold or Sell?

Bitcoin (BTC) price stumbled below $100K on Tuesday, but the story behind this drop is more complex than it seems. With global tensions rising and crucial trade talks between U.S. President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President and Chinese President Xi Jinping looming, the cryptocurrency market is at a very uncertain stage right now.

Just days before the talks, Beijing revealed a 15% tariff on U.S. coal and liquefied natural gas (LNG) – and this is only the beginning. What’s coming for Bitcoin?

Let’s take a closer look at how these events are shaping the market.

Global Markets Are Under Pressure

The growing uncertainty in the global economy has led to a bearish outlook on major stock indexes, which has also impacted the cryptocurrency market. Bitcoin, in particular, has been closely tied to these indexes, and many crypto experts suggest it may be wise to take some profits during this time.

Key Targets for Bitcoin Today

To understand how Bitcoin might perform in the next 24 hours, it’s helpful to look at its price action over the past three months. Bitcoin has been moving within a horizontal range, with the upper boundary between $108K and $109K, and the lower boundary between $89K and $91.5K.

Recently, Bitcoin has followed a downward trend, with lower lows and lower highs. This suggests that Bitcoin may dip below the support level of $96K again, with a potential midterm target around $91K.

However, if Bitcoin breaks above its current downward trendline on the four-hour chart, it could signal a shift in sentiment, invalidating the bearish outlook and opening the door for a potential reversal.

Market Picture

The ongoing tariff wars and economic uncertainty have added to the debate over the creation of a strategic Bitcoin reserve in the U.S. While President Trump signed an executive order to help establish the reserve, individual states have moved ahead of the federal government, taking the lead in efforts to build a Bitcoin reserve.

The Leaders Stand Strong

Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) has kept up its aggressive Bitcoin buying, recording a net cash inflow of $249 million on Tuesday. This brings the total value of its assets to about $57.7 billion. It seems that institutional investors may not run away that fast, after all.

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