Bitcoin price is rising today even after China vowed to retaliate against Donald Trump’s trade war. It rose 8% and moved back above the crucial resistance at $90,000. BTC price will continue to react to the latest trade news and the upcoming US nonfarm payrolls (NFP) data.
Bitcoin Price Rises After China Vows to Retaliate on US Tariffs
BTC and other risky assets jumped on Wednesday, even after China vowed to retaliate against Donald Trump’s tariffs. The retaliation came after Trump boosted his China tariffs from 10% to 20%, a move that will affect trade volume worth billions of dollars.
China has already announced some retaliatory measures. It will levy up to 15% on some US goods on top of the other tariffs it announced last month. Some of these tariffs target sensitive areas of the American economy like agriculture. Also, the government added more American companies to its unreliable entity list and vowed to appeal at the World Trade Organization.
Therefore, Bitcoin price and stocks jumped because the Trump administration appeared to soften its stand on tariffs. Howard Lutnick, the Commerce Secretary, said that the US will be willing to negotiate with the affected countries. Traders also believe that Trump simply wants concessions from its top trading partners.
US Nonfarm Payroll Data Ahead
Bitcoin price is also rising ahead of the upcoming US nonfarm payrolls (NFP) data on Friday. Analysts anticipate that the labor market softened in February because of Elon Musk’s DOGE job cuts. An ADP report showed that the private payrolls crashed to 77k in February from 186k a month earlier.
Weak jobs numbers would be bullish for BTC price because they would boost the odds of Federal Reserve interest rate cuts. Indeed, US bond yields have crashed, raising odds of more rate cuts.
The NFP report will come on the day that Donald Trump will have his crypto summit, where he will talk about the Strategic Bitcoin Reserves.
Bitcoin Price Technical Analysis
Bears seem to have won the Bitcoin price battle for now as it crashed from $109,200 to $90,000 today. The bulls vs bears power has crashed below zero for two consecutive weeks. While this is often a negative thing, historical data shows that Bitcoin often rebounds when the indicator turns red. For example, it crashed in August last year, leading to a strong rally. It also remained below zero in 2021 and then surged.
Bitcoin is also forming a hammer candlestick pattern that often leads to a breakout. If this happens, it will be the second consecutive hammer that may lead to a strong bullish breakout.
On top of this, Bitcoin is yet to hit the $122,000 target of the cup and handle pattern. This target was established by measuring the cup’s depth and then measuring the same distance from the upper side.
Therefore, a contrarian case can be made even as the crypto fear and greed index remained in the red. More robust gains will be confirmed if the coin rises above the key resistance at $108,426.
A drop below the support at $73,620 will invalidate the BTC price forecast and point to a crash to $50,000.
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