Bitcoin has been facing challenges as it struggles to maintain its price levels amidst new US trade war concerns. The cryptocurrency failed to hold onto the $108,000 mark heading into the May 25 weekly close, with market volatility intensifying due to comments made by US President Donald Trump regarding tariffs on goods from the EU.

Following these developments, Bitcoin experienced a drop in price, with $112,000 remaining as its latest all-time high. The market reacted swiftly to the news, leading to concerns about Trump's influence on the cryptocurrency's volatility. Keith Alan, co-founder of trading resource Material Indicators, criticized Trump's impact on the market, referring to it as "hot air."

Despite the market turmoil, some traders remain optimistic about Bitcoin's future. Analysts like Keith Alan and popular trader Crypto Tony believe that Bitcoin still has room to retest support levels without jeopardizing its overall upward trend. Alan highlighted key technical indicators on the Bitcoin daily chart that suggest a bullish trend remains intact as long as the cryptocurrency stays above certain levels.

Additionally, traders like Merlijn are keeping a close eye on short-term price movements, pointing out potential gaps in CME Group's Bitcoin futures market that could influence Bitcoin's price action in the near term. Merlijn highlighted a new gap at $107,230, suggesting that Bitcoin could revisit this level to "fill" the gap.

In a surprising move, prominent trader James Wynn, known as a Hyperliquid trader, shifted his position from long to short on Bitcoin over the weekend. Wynn had initially opened a long position worth $125 billion but switched to a short position valued at around $110 million due to the increased volatility driven by Trump-related news.

The cryptocurrency market continues to be influenced by external factors, such as geopolitical events and macroeconomic trends. Traders and analysts closely monitor these developments to make informed trading decisions. As Bitcoin navigates through uncertain market conditions, it remains to be seen how the cryptocurrency will react to ongoing challenges and whether it can sustain its bullish momentum in the long run.

It is important to note that trading and investing in cryptocurrencies involve risks, and individuals should conduct their research and seek professional advice before making any financial decisions in the volatile crypto market.

Source: https://cointelegraph.com/news/bitcoin-trader-swaps-1-25b-long-for-short-as-btc-price-108k?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound