Bitcoin dips below $80K as Trump Canada tariffs halt BTC price comeback
Bitcoin (BTC) experienced a significant cooling off, retreating approximately 7% after a momentarily encouraging surge on March 11, following the opening of Wall Street. Price action data from Cointelegraph Markets Pro and TradingView revealed that BTC/USD initially soared to local highs of about $82,154 on Bitstamp, but soon faced headwinds that triggered market caution during consolidation.
A major contributor to this retracement was the unfavorable announcement regarding trade tariffs imposed by US President Donald Trump on Canada, overshadowing slightly positive data from the JOLTS report, which indicated job openings had marginally exceeded expectations. As a consequence, the S&P 500 index dipped approximately 0.5% during this timeframe, reflecting increasing volatility across stock markets.
Investor sentiment appears notably unsettled, particularly given historical comparisons. The Kobeissi Letter highlighted the stark contrast in market performance, noting that the S&P 500 was up 5% at this point in Trump’s first term, whereas it now sits at a 7% decline since January 20. Trading firm QCP Capital elaborated on the challenges facing risk assets, attributing them to the administration’s nonchalance regarding recession risks—but they also pointed out potential silver linings amid the turmoil.
In a surprising twist, the current wave of risk-off sentiment has prompted a decline in 10-year Treasury yields by around 60 basis points and a weakening of the US dollar. Such conditions could historically create a more favorable environment for USD-denominated risk assets, including cryptocurrencies and equities. Notably, the US dollar index (DXY) dropped to 103.32, marking its lowest level since mid-October 2024.
Analysts are now scrutinizing Bitcoin’s price dynamics as it sits at a critical crossroads. While some are cautiously optimistic around potential bounce-back points, the challenge remains in identifying concrete upside catalysts. The trading channel More Crypto Online employed Elliott Wave theory to highlight key support and resistance levels, cautioning that Bitcoin could yet plunge to new long-term lows as long as current resistance holds firm.
Critically, traders await a decisive movement, with the market sentiment remaining ambiguous after the New York market opens. As noted by More Crypto Online, a confirmed low would require a sustained break above recent highs, presenting a level of uncertainty that traders frequently encounter. Popular trader CrypNuevo observed a positive reaction around the 50-week simple moving average (SMA) at approximately $75,500, a significant support line that has remained intact since March 2023.
Market participants are urged to remain vigilant, recognizing the inherent volatility and risks associated with trading in this environment. As always, individuals should conduct comprehensive research before making any investment decisions.
