Bitcoin Price Analysis: Rally Slows As BTC Loses Momentum
Bitcoin (BTC) and the broader crypto market rallied after President Donald Trump paused the 90-day tariffs on most nations, giving the stock and crypto markets some much-needed breathing room. The flagship cryptocurrency surged nearly 10% after President Trump paused the tariffs, going from a low of $74,624 to a day high of $83,605.
However, BTC’s momentum has waned during the ongoing session with the price down almost 2%, trading just below $81,000.
Bitcoin (BTC) Surges Past $80,000 As Trump Pauses Tariffs
Bitcoin and other cryptocurrencies rallied after President Trump announced a 90-day pause on tariffs for countries that haven’t imposed reciprocal tariffs on the US. However, Trump raised tariffs on China to 125% after it refused to withdraw reciprocal tariffs against the US. As a result, BTC surged nearly 8% from a day low of $74,624 to a day high of $83,605 before registering a marginal decline. Paul Atkins’ confirmation as SEC Chair also contributed to the positive sentiment prevailing in the market. Alankar Saxena, Co-founder and CTO at Mudrex, stated,
“The crypto market saw a strong rebound after Trump announced a 90-day pause on reciprocal tariffs, easing investor sentiment. Ethereum gained attention as the SEC approved Options on spot Ethereum ETFs, broadening the investment appeal of Ether among institutional traders. If the momentum continues, Bitcoin's rally to $100,000 is back on the table with the next major resistance at $88,600 and support at $80,000.”
Bitcoin (BTC) Still On Track For $200,000
BTC’s resurgence has got the attention of several analysts who have made bold predictions for the immediate future. One analyst believes a breakout above $86,900 could be the precursor of a major rally past $200,000. The analysts stated that based on the Mayer Multiple Indicator, BTC could find support around $69,000-$70,000. Another analyst has predicted that BTC is on the verge of a rally, suggesting that a move past $100,000 could be on the cards.
Meanwhile, data from CryptoQuant shows that BTC’s exchange netflow has been negative in the past month, suggesting a shift from centralized platforms to self-custody options. This can be interpreted as a bullish factor as it reduces immediate selling pressure. However, Bitcoin inflows into Binance have increased over the past two weeks. Analysts have assumed the influx of the asset could be related to investor caution in anticipation of the US Consumer Price Index (CPI) numbers.
QCP Analysts Issue Warning
QCP analysts have warned that Chinese countermeasures to Trump’s tariffs could leave BTC bulls stranded. According to analysts, BTC risks becoming a “classic bull trap” when the US-China trade war reaches its next step. BTC and other altcoins have rallied over the past 24 hours after President Trump announced a 90-day tariff pause. However, QCP warned investors to brace for China’s next move, stating,
“With China singled out so explicitly, market participants are bracing for Beijing’s counterpunch. Should retaliation materialize in force, the exuberant rally could quickly morph into a classic bull trap.”
Such a scenario would be a repeat of market behavior that unfolded earlier in the week when a rumor of a tariff pause sparked a rally and then an immediate decline. QCP cautioned analysts, stating,
“The surprise policy pivot temporarily soothed market anxiety, driving short-end crypto vols lower. Still, we advocate caution. Our desk continues to observe topside selling in May and June, suggesting that market makers are using the rally as an opportunity to offload unwanted positions.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) and other risk assets jumped substantially over the past 24 hours after Donald Trump announced a 90-day pause on reciprocal tariffs. The flagship cryptocurrency is approaching the middle line of the Bollinger Bands on the daily chart, a zone often seen as a pivot between bullish and bearish trends. Investors must keep an eye on $83,368, the middle band of the Bollinger Bands indicator. If BTC can get past this level it could be interpreted as a bullish sign.
BTC registered a sharp increase on Tuesday, rising over 3% to move past the 20-day SMA and $85,000 to settle at $85,152. The price surged to an intraday high of $88,624 on Wednesday but lost momentum after reaching this level and fell over 3%, slipping below the 20-day SMA and $85,000 to $82,525. BTC recovered on Thursday, rising almost 1%, and continued its upward trajectory on Friday, registering an increase of 0.76% and settling at $83,826. However, buyers lost momentum on Saturday as the price registered a marginal decline and settled at $83,423.
Source: TradingView
Markets tanked on Sunday, and BTC plunged over 6%, slipping below $80,000 and settling at $78,301. It faced significant volatility on Monday as rumors swirled about a tariff pause and fell to a low of $74,393 before surging past $80,000 and then dropping to settle at $79,164, ultimately registering an increase of 1.10%. The price was back in the red on Tuesday, falling almost 4% to $76,283. Markets rallied on Wednesday after Trump announced a 90-day tariff pause. As a result, BTC surged over 8%, reaching an intraday high of $83,605 before settling at $82,593. The current session sees BTC down almost 1% and trading at $81,768. Buyers will look to prevent a drop below $80,000 and move towards $85,000.
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.
Investment Disclaimer
