Bitcoin Rallies 10% as Trump Tariff Shift Boosts Investor Confidence

Bitcoin is showing signs of forming a strong bottom as market conditions align for a potential bullish reversal. Recent developments, including U.S. President Donald Trump's softer stance on tariffs and the Federal Reserve's focus on long-term inflation costs, have boosted investor confidence in risk assets like Bitcoin. According to a crypto analyst, Trump's review of reciprocal tariffs set for April 2 has revived overall confidence, leading to a Bitcoin price rally.

From a technical perspective, several indicators suggest a possible uptrend. Bitcoin is currently trading above its 21-day moving average, and several reversal indicators align with historical bullish reversals. Similar setups in the past were followed by strong price rallies, fueling hopes for a breakout. Additionally, some altcoins are breaking out of their downtrends, supporting the theme of broader sentiment change. Spot BTC ETFs received inflows last week for the first time since January, indicating that institutions might be re-entering the market.

Despite the optimism, Bitcoin could face strong resistance at the $90,000 level, which might slow market momentum as profit-taking sets in. While the market setup is constructive, there is no immediate catalyst for a parabolic rally. However, with BTC ETF inflows returning and key holders continuing to hold positions for the long term, the continuation of the Bitcoin recovery seems well-positioned. The following analysis delves deeper into Bitcoin’s technical indicators and key support and resistance levels currently affecting its price.

Ask Aime: What technical indicators suggest Bitcoin may reverse its recent downtrend, and what potential resistance levels could hinder its rally?

The trading day on March 23 began with Bitcoin trading within a limited range, showing little volatility as it gradually moved upward. Initially, neither an upward nor downward trend was evident in the MACD and RSI key indicators. Near 10:30 UTC, a golden cross formed, signaling the start of an upward breakout that caused price action to move quickly upward and break out of the prior range. This was followed by a surge in purchasing activity across all fronts. The next key support and resistance levels to watch for in Bitcoin are $84,635 and $86,500, respectively.

As the price of Bitcoin climbed into the next range, buyers aimed for a fresh level of resistance, bolstered by more bullish momentum. When a death cross converged upon an RSI at 11:50 UTC and 17:25 UTC, indicating an overbought condition, sellers tried to take control of the market. Bitcoin tacked higher in the known ascending channel throughout these pullbacks, indicating that the bullish momentum had not yet escaped it.

Further purchasing momentum led to another breakout as the trading day shifted to March 24. At 00:50 UTC, the death cross formation on the RSI indicated a second overbought condition, prompting a second price drop. The Golden Cross formation’s growing bullish momentum helped bulls regain purchasing pressure at 02:35 UTC during the session, leading to a Bitcoin price rally. A new support-resistance zone was indicated when Bitcoin crossed the $86,500 mark under the generally gradual upward pressure.

The latest Bitcoin price rally indicates significant bullish action and institutional demand, higher prices for risk assets, and potentially positive economic trends. While accumulation has picked up again and some technical indicators are turning more positive, Bitcoin is still facing its first significant resistance line at $90,000 and will have trouble breaking it without a low rhythmic rule catalyst or pattern.

Price analysis shows that Bitcoin has increased its simultaneous increases, so while the price does seem to trade in an overall ascent, traders should continue to monitor key support levels, key price levels in crypto, and sentiment in the overall market. Much of whether it remains at new highs or breaks down will depend on macroeconomic trends and the continued high demand for crypto is set in the months ahead. The BTC price prediction indicates that traders should monitor confirmation from signals like MACD and RSI to ascertain the subsequent course of action.