From the absolute bottom to the top on Wednesday, Bitcoin recovered $9,000. This was as President Trump announced a 90-day pause in his imposition of tariffs. The pause was for all countries except China, which now has its levy increased to a whopping 125%. Tariffs pause ignites markets Seemingly with no end in sight, President Trump’s tariff strategy was strangling the global economy and sending stock markets into a tailspin. However, in one false swoop on Wednesday, the announcement came that all tariffs would now be paused for 90 days, except for those on China, which were raised to 125%. On the news, markets shot into the green and started climbing as if they had left a huge weight behind. The S&P 500 finished the day up 9.52%, the Nasdaq Composite at 12.16%, and the Dow Jones 7.87%. So are the tariff terrors now done with? It would seem that with China, the biggest producer nation on the earth, tariffed at 125%, and with signals out of the country that it would fight to the end, there is still some way to go in order to put global trade and supply lines back on track. At least for now there is a decent let-up in the awful chain of bad news regarding the tariffs. As if to swing markets back into the green and avoid the plunge gaining momentum, Trump himself posted on Truth Social on Wednesday: “This is a great time to buy!!!” Also, only three days ago, Larry Fink, the CEO of Blackrock, said that the market situation was a “buying opportunity”, and that he did not see any systemic risks going into the longer term. $BTC must still make a higher high Source: TradingView Despite the big price increase on Wednesday, the short-term chart for $BTC shows that there is still quite a way to go to make a higher high and start reversing the current downward trend. The price is currently coming back down, and could retest the horizontal support. This is also the neckline of the small W pattern. If the retest is successful, the measured move of this pattern would take the price up to $86,500. This would be beyond the descending trendline, but still lower than the last pivot high, so a rejection and another lower high could see the price descend again. Bitcoin bull market still in the balance Source: TradingView The weekly chart for the $BTC price shows that things are still balanced on a knife edge. The price is adjacent to the descending trendline, and is still holding above the 50-week SMA. At the bottom of the chart, the RSI indicator line is once again above the hugely influential 44.00 level. While the Stochastic RSI at the very bottom of the chart is still shaping to turn back down, it does look like there is still life left in this bull market. Much will depend on the progress of tariffs, and especially the situation with China. Will Trump be able to pull another rabbit out of the hat? Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
