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In a previous analysis of the BTC/USD chart titled "Bitcoin Holds Above $100K. For Now?", we hinted at the cryptocurrency market’s vulnerability to a downturn following heightened volatility triggered by Trump’s inauguration (Arrow A).
The BTC/USD chart shows that after this event:
→ B: Bitcoin’s price saw a sharp decline after Trump imposed high tariffs on Canada, China, and Mexico. Financial markets reacted with shock, causing BTC/USD to drop over 12% in just two days, leading to the largest liquidation event in cryptocurrency history.
→ C: Bitcoin later recovered as Trump delayed tariffs on Mexico and China. Additionally, market sentiment improved after the U.S. president announced plans to establish a sovereign wealth fund within a year. Forbes speculated that this fund could potentially be used by the U.S. government to acquire Bitcoin.
BTC/USD Technical Analysis
Bitcoin’s price movements indicate a bearish trend, highlighted by the red descending channel. However, signs of buying activity could offer hope to market participants:
→ A test of the Order Block (marked in purple).
→ February’s low may serve as a key support trendline (marked in orange), originating in 2024.
→ D: Bears failed to sustain the decline after breaking below the 95,750 level.
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*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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