The crypto market faced intense selling pressure, with Bitcoin (BTC) tumbling over 5% to a low of $91,000 before rebounding to $94,000. Ethereum (ETH) suffered an even sharper drop, plummeting 19% to $2,159 before recovering to $2,500. This crash was fueled by renewed tariff tensions under Donald Trump, rattling investors and wiping out $2.19 billion in derivatives within 24 hours.

BTC and ETH Hold Key Support Levels

Despite the steep decline, both Bitcoin and Ethereum have defended crucial technical levels. BTC bounced from $91,000 and is now testing support at its 100-day SMA. Meanwhile, ETH rebounded from $2,100, aligning with a symmetrical triangle formation and gaining support from its 200-day SMA.

Is This a Bear Trap?

Some analysts believe this could be a classic “bear trap,” where a temporary sell-off tricks traders into shorting before a sharp reversal. Historically, such setups have preceded strong recoveries, and with BTC and ETH stabilizing at key levels, a bullish rebound may be on the horizon.

While it’s too early to confirm a trend reversal, the market’s resilience suggests this drop could be setting the stage for a major upside move.