The cryptocurrency market is once again becoming nervous, with Bitcoin falling to around 92,000 USD, causing a wave of concern among investors. However, technical analysis shows that Bitcoin is still defending a key upward structure, despite macroeconomic pressure. Lark Davis explains why the current declines are a result of Donald Trump's policies and tariffs, rather than the weakness of the crypto market itself.
The situation in the market clearly shows today how strongly cryptocurrencies react to global political and financial events.
Macro hits the markets: Trump's tariffs and Greenland
Lark Davis begins his analysis with a clear surprise at the market situation, as optimism had dominated until recently. The market seemed ready for further gains, but sudden macro news completely changed the mood. Bitcoin dropped to around 92,000 USD, and many investors began to ask what actually happened. According to Lark, the key factor is not crypto, but U.S. politics.
The main trigger became reports about Greenland and new tariff threats from Donald Trump against Europe. Futures on the S&P 500 index fell by 1.2%, which is already a noticeable move for the futures markets. Lark emphasizes that investors are reacting nervously even before the U.S. market opens. Such a reaction often predicts a broader correction in risky assets:
"Futures markets do not like this news about Greenland – that there will be more tariffs on Europe. That Europe will respond with retaliatory tariffs. Trump and his issue with Greenland, man. The 51st state, darling. Let's go with it! This is really a significant drop in futures. You know, down 1.2%. That's already noticeable. One could say that futures investors are quite worried about the U.S. market opening."
Davis explains that the announcement of tariffs at 10% from February 1, 2026, and 25% from June 1, 2026, threatens to escalate the U.S.–EU trade war. Europe will likely respond with its own tariffs, increasing the risk of a full stock market correction. If Nasdaq and S&P 500 start to sell off sharply, crypto may find itself in what is called 'goblin town.' This term means very deep price drops.
Bitcoin on the chart: the structure is still alive
Despite the nervous atmosphere, Lark Davis points out that Bitcoin technically still looks healthy. The daily chart clearly shows higher lows and higher highs, defining a classic uptrend. The price is bouncing off the 20-day and 50-day EMA, suggesting active defense from buyers. This is an important signal for short-term traders.
At the same time, the weekly chart shows a certain problem that raises caution. Bitcoin was rejected from the 50-week EMA around 97,000 USD. Lark describes this signal as 'not good,' as such a reaction often leads to consolidation or correction. However, this does not yet mean a trend reversal.
The key technical levels that Lark points out are several significant elements. It's worth organizing them to better understand the current situation:
an upward trend line that still acts as support
20- and 50-day EMA from which the price bounces
RSI, whose trend line also serves as support
200-day EMA around 100,000 USD as a rebound target
Lark emphasizes that testing the trend line would be normal market behavior. Such a third touch of support often strengthens the trend rather than breaking it. Panic at this point is, according to him, premature.
Bitcoin vs. the stock market: Who will pull whom
One of the key points of Lark's analysis is the relationship between the stock market and the crypto market. Davis clearly states that if the stock market enters a full correction, Bitcoin and altcoins will not remain immune. Cryptocurrencies are currently seen as risky assets, so they suffer during capital outflows. That is why macro plays such a large role today.
According to Lark, Nasdaq is behaving weaker as it did not establish new ATH during the last rebound. The index is moving in a triangle structure, and the 20- and 50-day EMA serve as key support. If these levels are lost, the situation will become difficult for the crypto market as well. Davis warns that in such a scenario, 'crypto coins' could fall very sharply.
On the other hand, Lark emphasizes that the current declines are not due to internal problems of Bitcoin. The network operates stably, institutional adoption continues, and the fundamentals remain intact. This is an important distinction for novice investors. Panic often arises when macro factors are confused with the issues of the asset itself.
It is worth asking the question: is this the end of the bull market? According to Lark, the answer is no, at least for now. The uptrend of Bitcoin has not yet been broken, although the risk has clearly increased. The upcoming reactions from the exchanges will be crucial.
Lark's positions and conclusions for investors
Lark Davis also shares his own market situation, providing context for his analysis. He holds a long position in Bitcoin and Solana, although he gave back some profits over the weekend. He was previously stopped out on XRP and Pepe, but re-entered Pepe after the correction. These decisions show how dynamic and demanding the current market is.
At the same time, Lark emphasizes that it is not worth chasing the market under the influence of FOMO. It is better to wait for technical confirmations or calm retests of key levels. The market is very nervous, so impulsive decisions often lead to losses. This is especially important for less experienced market participants.
So what should an investor do in such a situation? Lark suggests keeping a cool head and watching the macro. If tensions between the U.S. and EU escalate, pressure on the markets will remain high. However, if the situation calms down, Bitcoin could continue its move towards 100,000 USD.
In summary of his message, the current declines are mainly due to politics and Trump's tariffs, not due to Bitcoin's problems. The trend structure is still holding, although the risk of correction has increased. This is a moment that requires patience, not panic.
To read the latest cryptocurrency market analysis from BeInCrypto, click here.
