TLDR
- Bitcoin fell below $82,000, dropping nearly 5% this week amid Trump’s tariff decisions
- Trade war escalation has created a risk-off sentiment with investors moving to safer assets like gold
- Russia reportedly using crypto in oil trades with China and India to bypass Western sanctions
- Technical analysis shows Bitcoin found support at $78,000 and started a recovery above $80,500
- Upcoming Federal Reserve meeting on March 18-19 adding to market caution
Bitcoin (BTC) has experienced more downward trend this week, falling below the $82,000 mark as global economic tensions rise due to President Trump’s recent tariff decisions.
The cryptocurrency market is feeling the pressure from broader economic concerns, though technical indicators suggest potential recovery.
Bitcoin extended its losses on Friday, trading at $81,914.20 as of 03:08 ET (07:08 GMT), representing a 1.6% decline. The world’s largest cryptocurrency is set to register a weekly loss of nearly 5%.
BTC Price
The drop comes as President Donald Trump threatened to impose a 200% tariff on European alcohol imports. This move was in response to the European Union’s planned levies on American whiskey.
Trump is also expected to implement worldwide reciprocal tariffs starting April 2. These developments have raised fears about a potential U.S. recession, causing investors to pull back from speculative assets like cryptocurrencies.
The market sentiment has shifted toward safer investments during this period of uncertainty. Gold prices reached record highs on Friday, highlighting the current risk-averse mood among investors.
Fed Meeting
Adding to market caution is the upcoming Federal Reserve meeting scheduled for March 18-19. The Fed is widely expected to maintain current interest rates as it adopts a wait-and-see approach amid economic uncertainties.
The central bank faces a complex situation as ongoing trade disputes could potentially increase inflationary pressures. This complicates the economic outlook and monetary policy decisions.
Meanwhile, according to a Reuters report published Friday, Russia is increasingly turning to cryptocurrencies for oil transactions with China and India. This strategy aims to bypass Western sanctions.
Russian oil companies are reportedly using Bitcoin, Ethereum, and Tether (USDT) to convert yuan and rupees into rubles. While traditional currencies still dominate these trades, crypto transactions have grown to tens of millions of dollars monthly.
Technical Analysis
On the technical front, Bitcoin has shown some resilience by maintaining support above the $78,000 level. The cryptocurrency has started a recovery wave above the $80,500 resistance level.
Bulls pushed the price above $82,000 briefly, but faced resistance near the $84,000 mark. Bitcoin reached a high of $84,200 before correcting some gains.
The price is currently trading above $81,200 and the 100-hour Simple Moving Average. Immediate resistance is near $82,450, with key resistance levels at $84,000 and $85,000.
If Bitcoin closes above the $85,000 resistance, it could climb further to test $86,500 or even reach the $88,000 level. More gains might push the price toward $96,200.
However, if Bitcoin fails to rise above $82,450, it could face another decline. Immediate support lies near $80,500, with major support at $79,600.
Additional support levels include $78,500 and $77,000, with the main support positioned at $76,500. The cryptocurrency’s price action in the coming days will likely be influenced by both technical factors and broader economic developments.
