Market Reaction to Greenland Dispute
Bitcoin (BTC) narrowly avoided significant losses at Tuesday's Wall Street open as US markets reacted to escalating fears of a European trade war. Data from TradingView showed a critical battle unfolding around the $90,000 level, which is currently serving as BTC price support.
US stocks opened with notable losses, with the S&P 500 and Nasdaq Composite Index both down approximately 1.5% at the time of writing. In contrast, precious metals continued their ascent, with gold reaching a new all-time high of $4,750 per ounce, while silver hovered just below $96.
Geopolitical Tensions and Market Sentiment
Rhetoric from both sides of the dispute intensified before the market open. US President Donald Trump shared images of Greenland and Venezuela as parts of US territory, following earlier posts detailing communications between Trump and European leaders. Trump announced, "I had a very good telephone call with Mark Rutte, the Secretary General of NATO, concerning Greenland. I agreed to a meeting of the various parties in Davos, Switzerland."
“I had a very good telephone call with Mark Rutte, the Secretary General of NATO, concerning Greenland.”
“I agreed to a meeting of the various parties in Davos, Switzerland.”
Bitcoin's Price Outlook and Trader Analysis
With the focus shifting to the World Economic Forum in Davos, crypto market participants adopted a "wait and see" approach. Trader BitBull noted in his X analysis, "BTC got rejected from its weekly bull market support band. This happened twice in Q1 2025, before BTC finally reclaimed it and hit a new ATH. As long as BTC holds above the $88,500 level, the uptrend is still intact."
Bitcoin has now become a diagonal pattern. I do NOT trade diagonal patterns. I leave these for the Elliott Wave guys who without fail after the next big move will tell us how they had it all figured out $BTCpic.twitter.com/hj04jJHdod
— Peter Brandt (@PeterLBrandt) January 20, 2026
Veteran trader Peter Brandt had previously warned that a rejection at $98,000 could lead to Bitcoin falling to $60,000 or lower, describing the BTC/USD price action as a diagonal structure unsuitable for trading.
In contrast, trader Il Capo of Crypto expressed cautious optimism, suggesting the potential for Bitcoin to reclaim the $100,000 level on two-day timeframes. He stated on X, "Support zone here. Hold this and $100k levels should be next. This could be an important higher low for the entire crypto market, before strong bullish continuation."
“Support zone here. Hold this and $100k levels should be next.”
“This could be an important higher low for the entire crypto market, before strong bullish continuation.”