Bitcoin Price Prediction: BTC/USD Splits Into Two Opposing Fair Value Gaps

Bitcoin is grappling with intensified volatility following a sharp selloff triggered by US President Donald Trump's abrupt announcement of a sweeping 50% tariff on all EU imports starting June 1.

U.S. President Donald Trump's surprise announcement of a 50% tariff on all EU imports starting June 1 has triggered an instance of heightened volatility in the markets, especially in the realm of crypto.

The macroeconomic move saw assets sell-off sharply, with Bitcoin dropping aggressively from all-time highs near $111,800 to lows around $107,500 in a matter of hours.

However, there was a brief recovery towards $109,000, and technical analysis on the 1-hour candlestick timeframe shows the two ways this plays out.

Bitcoin FVG Structure

According to crypto analyst TehThomas, Bitcoin’s current price structure is defined by two opposing 1-hour fair value gaps (FVGs). The lower FVG zone identified by the analyst is around $107,500, which showed up during the rally towards $111,814 ATH and is now acting as the first significant reaction point post-rally.

The upper FVG range is between $109,800 and $110,700. This level, previously the base of a breakdown candle, flipped into strong resistance on Friday. Interestingly, a rejection was confirmed inside this upper FVG, which showed there were many sellers present in that zone.

Notably, the 1-hour chart shared by the analyst points to a deadlock scenario for the Bitcoin price. A breakout above or below the identified fair value gaps will likely define the directional bias for Bitcoin’s next major leg.

Bitcoin’s next impulsive move will likely come with volume confirmation, either with a bullish displacement above resistance or a bearish rejection that pushes the Bitcoin price toward a lower demand target.

Chart Image From TradingView

Bitcoin’s Implied Value

According to the analyst, there are two main liquidity targets that could come into play depending on the direction of the breakout.

On the upside, a breakout above the upper FVG could send the Bitcoin price towards the implied value of $113,000. This level is defined by the midpoint of the large imbalance in price action that occurred during the rally.

On the downside, a breakout below the lower FVG could push the Bitcoin price towards the implied value of $106,000. This level is aligned with a liquidity pool left behind from consolidation early last week.

If the structure breaks downward below $106,000, sellers may seize control in the short term.

At the time of writing, Bitcoin was trading at $106,888.