Trump Does It Again. Market Reversal on New Tariff Pause
Bitcoin (BTC) Challenges Long-Term Trend Line Again. Is a Break In the Cards?
The crypto markets are green-ish again and the main players are still Trump and the reciprocal tariffs – this time we get a pause and the start of negotiations. On Wednesday, President Trump announced a 90-day pause on the newly instated tariffs but maintained a 10% tariff on most countries and opened the door for negotiations. However, the trade duties on China were raised to 125%.
Bitcoin climbed to a high at $83,500 as soon as the news hit the wire but it gave up some of the gains, currently trading at $80,500. It remains to be seen what type of negotiations the U.S. President has in mind and how it will all play out. Thus far, European Commission head Ursula von der Leyen said that the EU will also pause the reciprocal tariffs, getting ready for the negotiations.
Just before the 90-day pause announcement, President Trump tweeted “This is a great time to buy!!! DJT.” Soon after, stocks and most cryptocurrencies shot up, in a buying frenzy. Some voices were hinting at insider trading but there is no clear evidence of that, of course.
Richard Painter, a former ethics lawyer at the White House mentioned that trading on insider knowledge is prohibited and posed the question of whether Trump knew that he was about to announce the tariffs pause before he made the tweet. This will probably remain a mystery forever but what is certain is that people who acted on his tweet made (a bunch of) money.
Chart Analysis – BTC/USD
Bitcoin is once again bouncing its head on the long-term bearish trend line drawn from the $109K All-Time High reached in January. As mentioned in an older post, this trend line is crucial for Bitcoin’s next move and could spark a strong rally if the bulls manage to close the price above it.
But just as in its previous attempts, the price was rejected sharply as soon as it hit this diagonal resistance. This does not mean that it’s undoubtedly headed lower, just that it may take a while until we see a break. For the short term, traders should watch the support at $76,500, while immediate resistance sits at $83,500, which is Wednesday’s high.
Any talks regarding tariff negotiations or rumors/news about the levies imposed on China will likely drive Bitcoin’s next move. If anything remotely related to this topic comes out, the crypto market will likely react accordingly, disregarding any technical prediction.
