Crypto Daily - After the huge Trump-inspired Sunday pump, all the gains have now been given back. President Trump’s tariffs have just gone into effect, and Canada and Mexico have 25% levied against imported goods into the US, while China tariffs doubled to 20%. Can Bitcoin survive in this kind of environment?
Trump tariffs squash the good news
No matter all the talk of a Crypto Strategic Reserve and all the other tailwinds for Bitcoin, when it comes down to it, what appears to really matter is a strong US economy with a stock market that continues to steadily rise.With the Trump tariffs on Canada, Mexico, and China just having come into force on Tuesday, it seems that even the good news is having scant effect. President Trump’s announcement of the huge $165 billion investment into the US by Taiwan semiconductor company TSM was met with an avalanche of selling across all the US stock markets.
To add to the extremely pessimistic sentiment, the Atlanta Federal Reserve revised its GDP growth forecast for Q1 2025 down again. The revised figure is now a whopping -2.8%, down from the previous forecast of -1.5%.
The question is: How does Bitcoin cope in an environment which is pulling global stock markets down, where institutions have to pull in their horns, and where retail investors are too scared to enter the market?
All Sunday’s gains are now erased
Source: TradingView
The daily chart for $BTC shows how the large gains on Sunday were completely erased by Monday. Such is the extreme volatility, and it has to be said, quite possible manipulation, that the $BTC price is experiencing.
Even the most ardent supporter of Bitcoin can see that there the price is still rolling over from a double top chart pattern. Can this be halted? Yes, but some really good news is probably needed in order for this to happen.
The price has come down again almost to the Fibonacci level of the 0.786, at $81,900. These are the Fibonacci levels drawn for the latest pump then dump. If $BTC is able to reverse from here, there is still some hope. If not, a continued dump down to the top of the previous 8-month long bull flag is probably a likelier option.
What can stop the rot?
Source: TradingView
The monthly chart is also not looking good for Bitcoin. First came an enveloping candle for February, which took the price down below the major ascending trendline, and then this month’s candle tried to get back above, and so far has been strongly rejected. There is still a long way to go in this month, so there is always the hope that the bulls can force the candle back up above the trendline.
Nevertheless, at the bottom of the chart, the Stochastic RSI is showing bearish divergence with the price action, and it is likely therefore that this divergence is currently playing out.
Does Trump have a trump card up his sleeve that can turn things around? Friday’s Crypto Summit in the US could provide some answers.
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.