FameEX Hot Topics | Bitcoin Surges to $86K as Trump’s Tariff Relief Boosts Breakout Prospects

On April 13, Bitcoin surged to an 11-day high, reaching $86,000 for the first time since April 2. This dramatic rise was largely driven by a relief rally linked to recent changes in U.S. financial policies, particularly President Donald Trump's decision to exclude certain key products from his tariffs on China. This move had an immediate positive effect on the cryptocurrency market, attracting attention from both traders and investors who saw it as a signal of improved market conditions.

The price jump in Bitcoin mirrored broader trends in traditional financial markets, which also experienced a relief rally due to the tariff changes. As traditional markets reacted positively, crypto markets followed suit, bolstering Bitcoin’s price. However, the optimism was short-lived, as Bitcoin’s price faced significant volatility after the weekend. With traditional markets closed, liquidity in the crypto market was lower, which amplified price fluctuations. By the end of the weekend, Bitcoin had fallen back below $84,000, raising concerns among traders about the sustainability of its recent gains.

Amid the rally, analysts noted the importance of the 200-day exponential moving average (EMA) at $85,000. Daan Crypto Trades pointed out that Bitcoin was currently hovering around this critical technical level. However, with volatility lingering over the weekend and upcoming news related to tariffs and major tech earnings, uncertainty remained. Lower liquidity on weekends further compounded the speculative nature of Bitcoin’s price movements, making it harder to predict its short-term trajectory.

Not all market participants were convinced that the rally signaled a lasting bullish trend. Well-known trader Peter remarked that the rebound from recent lows appeared "more corrective than impulsive," suggesting that it might not be a true breakout. This cautious perspective reflected a broader sentiment of uncertainty among traders about Bitcoin’s ability to maintain upward momentum.

On a more optimistic note, analyst Rekt Capital pointed to the long-term daily downtrend that has been in place since late 2024. Although Bitcoin briefly closed above this downtrend in recent sessions, Rekt Capital emphasized that a successful retest was necessary to confirm the breakout. The downtrend remains a significant hurdle for Bitcoin’s potential bull market, and traders will be closely watching whether it can be overcome in the coming days.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.