Key Highlights:
- U.S. President Donald Trump has announced a fresh wave of reciprocal tariffs on several countries, which officially took effect at midnight on August 1.
- Trump recently shared on the Truth Platform that he ordered two nuclear submarines to be positioned in the “appropriate regions” amid the escalating tension with Russia.
- The Bitcoin price teases a bearish breakdown below the support trendline of the bull flag pattern, hinting at the mounting selling pressure in the market.
- The BTC price positioned above the 50, 100, and 200 daily exponential moving averages indicates the broader bullish trend is intact.
The pioneer cryptocurrency Bitcoin dives 1.67% during Friday’s U.S. market hours to trade at $113,847. This selling pressure came around the escalating war of words between US President Donald Trump and the Deputy Chairman of the Russian Security Council, Dmitry Medvedev. The bearish momentum further accelerated as Trump announced new reciprocal tariffs on several countries, which went live on August 1st at midnight. The BTC price currently teases a bearish breakdown from the support trendline of the bull flag pattern, signaling a risk of prolonged downfall.
Bitcoin Price Reacts to U.S.-Russia Nuclear Warnings
Since mid-July, the Bitcoin price has been wavering between the two horizontal levels of $120,000 and $117,000, which has accelerated the broader market uncertainty. However, the market selling pressures suddenly accelerated in the last 48 hours, and the Bitcoin price plunged from $117,833 to the current trading price of $113,967, accounting for 3.28%.
This bearish momentum can be attributed to escalating geopolitical tensions between the United States and Russia. On Thursday, former Russian President Dmitry Medvedev issued a stark warning to Donald Trump, urging him to consider “how dangerous the fabled ‘Dead Hand’ can be,” which refers to Russia’s Cold War-era nuclear deterrent system.
In a recent Truth post, Trump called Medvedev’s statement “highly provocative” and said, “I ordered two nuclear submarines to be positioned in the appropriate regions.”
As tensions escalate between the two nations amid talks of nuclear weapons, the crypto market is beginning to feel the pressure.
The selling pressure further accelerated as Trump recently imposed a massive amount of new reciprocal tariffs on several countries. The new tariff took effect at midline on August 1, 2025.
BREAKING: President Trump imposes a massive amount of new reciprocal tariffs including:
1. Canada: Tariffs raised from 25% to 35%
2. Switzerland: 39%
3. South Africa: 30%
4. Taiwan: 20%
5. Vietnam: 20%
6. Cambodia: 19%
7. Thailand: 19%
8. Malaysia: 19%
9.…— The Kobeissi Letter (@KobeissiLetter) July 31, 2025
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BTC Price Teases Breakdown Below Bullish Flag Pattern
The daily chart analysis of Bitcoin price reveals that the recent market correction has resonated within two downward-sloping trendlines of a flag pattern. The chart setup is characterized by a long ascending trend called a pole, which highlights the dominating uptrend in price, followed by a temporary pullback to regain bullish momentum.
Historically, the pattern has commonly emerged within an established uptrend to recoup the bullish momentum for a higher rally.
With an intraday loss of 1.6%, the coin price teases a bearish breakdown from the pattern’s lower boundary at $113,270. A bearish breakdown from a renowned bullish pattern would signal the increasing seller’s strength and a risk of prolonged price correction.
If materialized, the BTC price could plunge to the next immediate support of $110,519, followed by a dive to the $105,200 level.
However, the BTC price is still positioned above the 50, 100, and 200 exponential moving averages, which indicates the broader market sentiment is bullish.
On the contrary, if the coin price manages to retain the flag structure, the current correction may prolong but gradually recoup the exhausted bullish momentum for the next leap.
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