How Trump Influences Bitcoins Price
In a previous analysis of the BTC/USD chart titled "Bitcoin Holds Above $100K. For Now?", we hinted at the cryptocurrency markets vulnerability to a downturn following heightened volatility triggered by Trumps inauguration (Arrow A).
The BTC/USD chart shows that after this event:
B: Bitcoins 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
Bitcoins 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).
Februarys 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.
Read more: https://fxopen.com/blog/en/oa-how-trump-influences-bitcoins-price/
Text source: Forex Trading Blog
