“Liberation Day” Brings New Tariffs And Crypto Discounts
BTC/USD: Fake Break of Resistance. The Slide Continues?
The overly anticipated announcement of the new trade tariffs has come and gone, leaving behind a cheaper Bitcoin and a bit less uncertainty. The first piece of information that came out was that the Trump administration would impose a 10% tariff across the board. However, soon it was announced that products from a few other countries will have higher levies.
Starting April 5, the European Union will be hit with a 20% tariff, Japan will be hit with 24%, while China will face a 34% tariff.
In his speech delivered from the White House on April 2 (aka “Liberation Day”), President Trump said that these charges are “approximately half of what they are and have been charging us.”
The crypto markets reacted to the new tariffs negatively and Bitcoin dropped sharply following the news. Although it appeared to recover slightly, the rally was short-lived, and downward momentum prevailed.
Looking for a silver lining, at least now we know and there is no more room for speculation. The tariffs are in place, they are bad but at least investors know the numbers. Whether this certainty will allow Bitcoin and altcoins to recover remains to be seen but the speculation is over for now. Considering that Bitcoin is significantly cheaper, maybe it’s time for the whales and institutional investors to take advantage of this low price. If this happens, we will see rallies across the board.
Chart Analysis – BTC/USD
Before the drop, there was a relatively strong rally that came after a few indecision candles (doji) and appeared to break the long-term bearish trend line drawn from the All-Time High (ATH) at $109K. As mentioned before, a break of this trend line would be a major signal for the bulls to step in and would probably spark a strong bullish phase.
However, the daily candle finished with a huge wick in its upper part (the price dropped as soon as Trump announced the tariffs) and now this looks like a bearish signal. The bearish momentum will likely take the price to the low at $77,000 if the minor support at $81,500 – $81,300 is broken.
The price is below the bearish trend line and below a bullish trend line, with the Relative Strength Index (RSI) moving down but not oversold. Things are looking grim for the king of cryptos and to see any chance of a bullish reversal, BTC should bounce at the current support, followed by a break of the long-term bearish trend line.
