Bitcoin (BTC) price has recently shown volatility, surging from a five-month low of $74,300 to a peak of $83,565, only to face rejection at the $83,500 level. This raises the crucial question: can BTC maintain its position in the $80,000 range?
Impact of Economic Policies on Bitcoin Price
On April 9, U.S. President Donald Trump announced a 90-day pause on proposed tariff hikes. While this gesture seemed to alleviate some market fears, the simultaneous escalation of tariffs on Chinese imports to 125% indicates ongoing tensions. This has had a direct effect on Bitcoin, which rallied over 7% post-announcement but now faces the challenge of sustaining momentum in light of potential retaliatory measures from China.
QCP Capital noted, “With China singled out so explicitly, market participants are bracing for Beijing’s counterpunch.” If tensions escalate, the ongoing recovery in Bitcoin could quickly resemble a bull trap.
Inflation Concerns and Market Sensitivity
In addition to geopolitical factors, inflationary pressures and economic uncertainties threaten to impact Bitcoin’s price trajectory. Historical data indicates a growing correlation between Bitcoin and tech stocks. For instance, declines in equity markets due to initial tariff announcements led to a nearly 10% drop in Bitcoin’s value.
Market analysts warn that should trade tensions worsen, or the Federal Reserve adopt a more aggressive stance on interest rates to combat inflation, Bitcoin could see increased downward pressure from investors fleeing riskier assets.
Key Bitcoin Levels to Monitor
Currently, Bitcoin’s price dynamics are focused on critical levels following a breach of the $75,000 mark. According to Glassnode’s analysis, traders are now eyeing significant moving averages: the 111-day MA at $93,000, the 200-day MA around $87,000, and the 365-day MA at $76,000. These levels will be vital for Bitcoin to maintain upward momentum.
Furthermore, if Bitcoin fails to solidify above the $80,000 level, risk of another downward trend looms, suggesting a potential revisitation of the active realized price at approximately $71,000.
As emphasized, “We now have confluence across several onchain price models, highlighting the $65k to $71k price range as a critical area of interest for bulls.”
Final Thoughts
The coming days will be pivotal for Bitcoin as market participants await the April 10 CPI data, which could significantly impact sentiments surrounding inflation and monetary policy. Investors are urged to remain cautious and vigilant as market conditions remain fluid.
This article does not constitute investment advice. All trading and investment decisions involve risk, and readers should seek to conduct their own due diligence.
