Bitcoin recently saw a sharp decline in price, largely due to market reactions to U.S. President Donald Trump’s tariffs. On X (formerly Twitter), Trump revealed that new tariffs were being imposed on Mexico, Canada, and China, creating widespread uncertainty in global markets. The move triggered a downturn across various asset classes, with Bitcoin [BTC], the leading cryptocurrency, dropping by about 6%. The market feared the potential for a prolonged trade war, and Bitcoin was no exception to the broader market’s weakness.

Despite this price dip, a surprising trend is unfolding in the Bitcoin market. While many traders expected further losses, the number of long positions on Bitcoin has been increasing. Data from analytics platforms Coinglass and Hyblock reveal that a significant portion of the market is betting on Bitcoin’s price to rise, even amidst the volatility caused by geopolitical events. According to Coinglass’s on-chain metrics, exchanges have seen an outflow of $677 million worth of Bitcoin. This suggests that institutional players, whales, and long-term investors are taking the opportunity to accumulate more BTC during this dip. It indicates that there is confidence in Bitcoin’s long-term value, and many investors see this moment as an attractive entry point.

Meanwhile, Hyblock’s data shows that 67% of traders have opened long positions as Bitcoin’s price continues its downward trend. This percentage of traders in long positions is significant, especially when considering the overall market sentiment. It indicates that a majority of crypto traders are maintaining a bullish outlook on Bitcoin, despite the broader uncertainty affecting global markets. The rise in long positions suggests that many believe the price of Bitcoin will recover, and they view the current dip as a short-term opportunity.

This combination of outflows from exchanges and increasing long positions signals a market belief in Bitcoin’s resilience. While the short-term outlook has been marked by volatility, these market movements suggest that investors are positioning themselves for a rebound. In fact, Bitcoin’s price has managed to stay above a crucial support level of $91,500, even though it has tested this level multiple times in recent days. Historical price movements indicate that when an asset repeatedly tests a support or resistance level, it may either break through that level or reverse direction. For now, Bitcoin has demonstrated stability above this key support, and investors remain hopeful that the price will continue to hold steady.

As long as Bitcoin remains above $92,500, the market sentiment is likely to stay positive. However, if the price falls below $91,000 and closes under this level, there is the potential for a deeper correction. Should Bitcoin drop significantly, it could fall to the $74,000 range. However, Bitcoin’s ability to maintain its position above key technical levels is a positive sign for investors, who remain optimistic about a longer-term uptrend.

Bitcoin’s price action has shown resilience, particularly in maintaining its position above the 200 Exponential Moving Average (EMA), which often signals an ongoing uptrend. Despite the recent price fluctuations and external pressures from global events, Bitcoin has continued to hold its ground above this important moving average, suggesting the potential for future upward movement.

In conclusion, while Bitcoin has faced a short-term price decline, the overall market sentiment remains bullish. The increase in long positions and ongoing accumulation of Bitcoin suggest that many investors still see long-term value in the cryptocurrency. As long as Bitcoin holds above key support levels, there is a strong likelihood of a continued bullish outlook. However, traders will need to watch closely for any signs of further weakness, as Bitcoin’s price could face further downside risks if these support levels fail to hold. Investors should stay alert to Bitcoin’s price action and global market developments in the coming weeks.