What It Means for Crypto Investors
The U.S. stock market recorded its second-largest daily gain in history yesterday, and the crypto market, particularly Bitcoin, responded with a strong upward move. This massive shift came in the wake of a significant announcement from former President Donald Trump, who authorized a 90-day pause on all tariffs except those on China.
Trade Tensions Heating Up: What’s Going On?
Trump’s move to pause tariffs is seen as a strategic maneuver in the ongoing U.S.-China trade war, with Chinese tariffs increasing to a staggering 125%. Rumors suggest this policy might be a test to identify allies and adversaries on the global stage.
While Trump has expressed willingness to strike a deal, China’s economy — heavily reliant on exports, with about 40% going to the U.S. — is now under pressure. As a result, Chinese officials are already in talks with other global leaders to initiate economic stimulus plans in response to these tariffs.
Market Reaction: Stocks and Bitcoin Explode
Following the announcement, the market responded dramatically:
S&P 500 posted its second-best day ever.
NASDAQ jumped 12%, marking its fourth-best day in history.
Tesla soared more than 20% within minutes.
Meanwhile, the Chinese Yuan hit an 18-year low, reflecting the severe impact of the tariff escalation on China’s economy.
Bitcoin’s Technical Picture: Key Levels to Watch
Bitcoin reacted swiftly, bouncing upward with bullish momentum. Let’s break down the key points from the charts:
CME Gap: Bitcoin is once again approaching a CME gap at $83.8K, a typical level that markets tend to fill.
Double Bottom Formation: On the 4-hour chart, a classic W-pattern is forming — a strong bullish indicator.
Daily Downtrend Resistance: Bitcoin remains under a significant downward trendline. Until a breakout above ~$87,000 occurs, we remain technically in a bearish structure.
Weekly Support: On a higher timeframe, BTC is still holding above an ascending trendline, supporting the bullish case.
What Does This Mean for the Market?
Despite the recent bounce, funding rates remain negative, and market sentiment is still fearful, particularly in traditional equities. This fear has historically corresponded with prime accumulation opportunities.
Bitcoin is currently retesting previous range highs, and historically, such retests have preceded strong rallies. We’ve seen 90-day downtrends in the past, and we might be nearing the end of consolidation and the start of a new leg upward.
Ethereum: Oversold and Ready to Rebound?
Ethereum is also showing signs of strength:
Down over 65% from its highs.
Extremely oversold conditions.
Current price levels around $1,400–$1,600 could offer a massive bounce potential, targeting $2,300–$2,500, which would be a 60%+ move.
Ethereum’s valuation against Bitcoin is also favorable, hinting at an opportunity for altcoin accumulation in this phase.
Final Thoughts: Trump’s Next Move Could Decide Everything
Much of the market’s future — both in stocks and crypto — hinges on Trump’s next policy move. If a deal is reached with China, we could see new all-time highs across the board. However, renewed tension could mean further volatility.
Investors should watch both macroeconomic news and technical patterns closely. As always, risk management is crucial in these unpredictable times.
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