Bitcoin
$84,270 is attempting to recover the $84,100 level, marking a 2.3% increase following new tariffs imposed by China on imports from the United States. This development has stirred uncertainty in the markets amid escalating global trade tensions.
Cryptocurrency Faces a Trust Challenge
China has raised tariffs on U.S. goods by 34%, escalating trade tensions significantly. This move, coming just two days after President Donald Trump announced tariffs on China and other countries, has led to cautious responses from the markets. Recent data indicates that Bitcoin dropped temporarily to $81,600 but has since started to recover.
We are currently in the midst of another trust test for cryptocurrencies, and if Bitcoin can remain robust despite the tariffs, it could lead to a more significant rally.
Technical Analysis and Market Trends
These market developments suggest that Bitcoin is following a distinct path, separate from U.S. stock indices. In contrast to the 6% drop observed in the S&P 500, Bitcoin has maintained a stable trajectory above $82,000. As trade tensions rise, investors are leaning towards portfolio diversification, emphasizing Bitcoin’s strong support levels.
The daily Bollinger Band data indicates that Bitcoin is trading close to the mid-range. The lower band signals around $80,927, while the upper band points towards $88,104. According to this indicator, as long as Bitcoin remains above $81,000, it is technically considered to have support.
Some analyses suggest that if the price maintains support at the $81,000 level, Bitcoin may emerge as a preferred alternative store of value for investors. Consequently, it is seen as possible for the price to exceed $85,000 and eventually approach around $88,000.
Market data indicates that the weakness in the Nasdaq 100 index also supports Bitcoin’s resilience. The decline in major tech stocks draws investors’ attention to Bitcoin’s independent trajectory. Currently, the RSI level is observed at 47.22, and remaining above 50 could indicate a positive momentum.
Moreover, trading volumes are at moderate levels, indicating that investors are focusing on accumulation rather than hasty selling. However, caution is warranted regarding the risk of liquidation if the support level is breached.
Experts advise that amidst market uncertainty, investors should closely monitor technical indicators. Especially if support levels are maintained, Bitcoin could indeed serve as an alternative store of value.
