Bitcoin Faces Correction Risks After Hitting $112K All-Time High

Bitcoin recently surged to a record high of nearly $112,000, sparking market euphoria. However, warning signs of a potential pullback are emerging. The daily chart shows long upper wicks on recent candlesticks, signaling rejection at higher levels. BTC has already dipped below $110,000, and trading volume is fading—both signs of weakening bullish momentum.

Technical indicators are flashing red. The Relative Strength Index (RSI) is sliding down from overbought territory above 70, hinting at further downside. If Bitcoin breaks below the $107,000–$108,000 support zone, it may revisit the crucial $102,000 breakout level. A breach there could trigger intensified selling and a deeper correction.

Adding to the bearish pressure is a looming macroeconomic event. On June 1, 2025, the U.S. plans to impose a 50% tariff on goods imported from the European Union. The move, meant to address trade imbalances, could ignite a retaliatory economic response from the EU. This geopolitical tension increases uncertainty for risk assets like Bitcoin, which could face capital flight if investors seek safer havens.

A potential tariff war may tighten global liquidity and dampen institutional demand for cryptocurrencies. Despite growing interest, Bitcoin’s recent rally appears speculative and vulnerable to external shocks. With weakening momentum, declining volume, and escalating macroeconomic risks, the current trend looks fragile.

Traders should watch the $102,000 level closely. A break below could mark the end of Bitcoin’s post-all-time-high rally and signal the start of a sharper downturn. As global markets brace for volatility, Bitcoin’s path forward may depend heavily on macro developments and its ability to hold key support zones.