TLDR
- Bitcoin found support above the $85,500 level and is attempting recovery
- BTC is currently trading around $87,300 amid global market concerns over Trump’s auto tariffs
- A key resistance level for Bitcoin sits at $88,200, with potential for a move toward $90,000 if broken
- GameStop announced plans to raise $1.3 billion through convertible bonds to purchase Bitcoin
- Market sentiment shows caution as investors await implementation of tariffs on April 2
Bitcoin price has shown resilience by maintaining support above the $85,500 zone. The cryptocurrency has begun a fresh recovery wave, pushing above the $86,200 resistance level. This movement suggests strong buyer interest despite market uncertainty.
The bulls successfully moved the price above $87,000. Bitcoin cleared the 50% Fibonacci retracement level of the recent downward correction from $88,259 to $85,853. This technical indicator suggests momentum may be shifting in favor of buyers.
Bitcoin is now trading above $86,500 and the 100-hour Simple Moving Average. These technical indicators are often viewed as bullish signals by traders. They suggest the short-term trend might be turning positive.
Key Resistance Levels Ahead
Immediate resistance appears near the $87,700 level. This coincides with the 76.4% Fibonacci retracement level of the recent correction. Traders are watching this level closely.
The moment of truth…
Bitcoin ($BTC) is at resistance, trading in a bearish rising wedge.
All eyes are on the stock market today after Trump announced a 25% tariff on imported cars.
🚨 GDP and unemployment claims data released later today pic.twitter.com/rjtAkeThgs
— Trader Edge (@Pro_Trader_Edge) March 27, 2025
The first major resistance sits around $88,000. Beyond that, a key resistance formed at $88,200, marked by a bearish trend line on the hourly chart. This level has proven difficult to break.
A successful close above $88,200 could trigger further upward movement. In such a scenario, Bitcoin might test the $89,500 level. Further momentum could push BTC toward the psychologically important $90,000 mark.
Downside Risks Remain
If Bitcoin fails to break above $88,200, a fresh decline may begin. The immediate support level sits near $87,000. This has acted as a pivot point in recent trading sessions.
The first major support appears at $86,500. This level has held during previous dips and represents an important price zone for buyers. Below this, $85,500 provides another support cushion.
Further losses could push Bitcoin toward $85,000. The main support sits at $84,500, which analysts view as a critical level to maintain the overall bullish structure.
Trump Tariff Announcement Impacts Markets
Bitcoin traded mostly flat on Thursday at around $87,315. This muted performance came amid a global market downturn. Investors responded to U.S. President Donald Trump’s announcement of new tariffs.
Trump revealed plans to impose a 25% tariff on all foreign-made cars and auto parts. The tariffs will take effect on April 2. This policy aims to boost domestic car manufacturing by encouraging production within the U.S.
The announcement created concerns about a potential global trade war. This led to a broader risk-off sentiment across financial markets. In such environments, investors typically reduce exposure to volatile assets like cryptocurrencies.
Stock Markets React Negatively
The tariff news triggered a sell-off in global stock markets. The S&P 500 declined by 1.1%. The technology-heavy NASDAQ Composite dropped even further, losing 2%.
In contrast to equity markets, gold prices rose. This movement reflected the risk-off mood among investors. Gold often serves as a safe-haven asset during times of market uncertainty.
Investors remain cautious ahead of April 2. This date marks the implementation of the new tariffs. Market participants are watching for potential retaliatory measures from other countries.
GameStop shares declined nearly 8% to $26.26 in after-hours trading on Wednesday. The drop followed the company’s announcement of a $1.3 billion convertible bond offering. These funds are earmarked for Bitcoin acquisitions.
Earlier in the day, GameStop stock had risen 11.7% to close at $28.36. This increase came after the company revealed plans to include Bitcoin as a treasury reserve asset. The news represents another major company adopting Bitcoin as part of its balance sheet strategy.
The proposed bonds will be five-year convertible senior notes with 0% interest. GameStop stated the proceeds would be used for general corporate purposes, including Bitcoin purchases. This move follows similar treasury strategies adopted by companies like MicroStrategy and Tesla.
Most altcoins moved lower on Thursday, following Bitcoin’s pattern. Ethereum, the second-largest cryptocurrency, fell 1.6% to $2,025.96. This decline reflected the broader market sentiment.
XRP experienced a sharper drop, losing 4% to trade at $2.36. Other major altcoins also saw declines. Solana dropped 3%, while Cardano fell 1.9%.
Polygon slipped 1.6% as the overall market showed weakness. Among meme tokens, Dogecoin bucked the trend with a 1.8% gain. The Trump-themed token edged 0.3% higher despite the overall market dip.
Technical Indicators Point to Potential Movement
The hourly MACD for Bitcoin is gaining pace in the bullish zone. This technical indicator suggests growing momentum for potential upward movement. Traders use this signal to identify possible trend changes.
The hourly Relative Strength Index (RSI) for BTC/USD remains above the 50 level. This reading indicates moderate buying pressure in the market. RSI values above 50 are generally considered bullish.
These indicators, when combined with price action and support/resistance levels, provide traders with a comprehensive view of market conditions. They help in making informed trading decisions during volatile market periods.
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