TLDR
- This week saw Bitcoin descending below $82,000, nearly a 5% decline, influenced by the tariff strategies of President Trump.
- The intensifying trade war has investors seeking refuge in safer options like gold, shying away from risky assets.
- Reports suggest Russia is increasingly utilizing cryptocurrencies in oil trade deals with China and India to sidestep Western sanctions.
- Bitcoin has discovered a price floor at $78,000, showing signs of recovery, climbing past the $80,500 mark after the dip.
- Market energies remain cautious ahead of the March 18-19 Federal Reserve assembly, heightening economic apprehensions.
The past week saw Bitcoin's decline below $82,000, as global uncertainties rise due to recent tariff decisions by President Trump.
Broader economic issues are impacting the cryptocurrency space, yet technical indicators present a chance for potential recovery.
On Friday, Bitcoin extended its losses to trade at $81,914.20 in early morning hours, showing a nearly 5% weekly drop.
BTC Price
The recent dip coincides with Trump's threats to impose heavy tariffs on European alcohol imports, a retaliation against EU's taxes on American whiskey.
Come April, Trump aims to launch global reciprocal tariffs, increasing recession fears and leading investors to retreat from cryptocurrencies.
The current climate leans towards secure investments, evident as gold prices hit new peaks, showcasing the risk-averse attitude taking hold.
Fed Meeting
Adding to the cautious atmosphere is the Federal Reserve's impending meeting, with expectations of steady interest rates under the prevailing economic uncertainties.
The central bank is navigating a complex landscape, where ongoing trade disputes may elevate inflation, making policy decisions tough.
Meanwhile, a new report highlights Russia's pivot to cryptocurrencies for oil transactions with China and India, as a strategy to dodge Western sanctions.
Russian energy firms are reportedly using Bitcoin and other cryptos to facilitate currency conversions amid global trade frictions.
Technical Analysis
On the charts, Bitcoin seems to maintain its strengths above $78,000, reclaiming position above the $80,500 level indicating a potential bull trend.
After a brief surge past $82,000, Bitcoin encountered resistance around the $84,000 threshold, peaking at $84,200 before consolidating.
Currently floating above $81,200 paired with the 100-hour moving average, immediate hurdles manifest near $82,450, with further resistance expected at $84,000 and beyond.
Should Bitcoin manage to surpass the $85,000 barrier, further gains could propel it to test higher grounds approaching $96,200.
Yet, failing to break $82,450 could lead to another downturn, with key supports set around $80,500, and deeper at $79,600.
Further backing exists near $78,500 and $77,000, anchoring at $76,500, as Bitcoin's trajectory remains closely tied to both technical elements and the broader economic landscape.
