Market Analysis: Trump’s Trade Policy Shift Impacts Crypto
In a significant development for both traditional and crypto markets, Donald Trump has decided to halt plans for doubling tariffs on Canadian aluminum and steel. This decision, coupled with Canada’s withdrawal of retaliatory measures, has sparked optimism across financial markets and could signal a potential bottom for the recent crypto market correction.
The announcement comes as market analysts debate Bitcoin’s potential bottom, with the easing of trade tensions potentially providing the catalyst needed for a market reversal.
Technical Analysis Points to Strong Support Levels
According to on-chain analytics firm Glassnode, current selling pressure in Bitcoin stems primarily from ‘top buyers’ who entered around the $109K level. Despite this short-term weakness, three key technical indicators suggest a potential market bottom:
- Strong support at the 50% Fibonacci retracement level
- Confluence with the 50 EMA (Exponential Moving Average)
- Formation of a textbook hammer candlestick pattern
Institutional Interest Remains Strong
While retail investors may be experiencing panic, institutional players continue to accumulate. Notable entities including Michael Saylor’s MicroStrategy and El Salvador have maintained their bullish stance, viewing the current correction as a strategic buying opportunity.
XRP Shows Remarkable Resilience
In a related development, XRP has demonstrated particular strength, trading at $2.18 following its inclusion in the US Crypto Reserve. This development, combined with the potential resolution of its SEC lawsuit, positions XRP for potential further gains.
Market Outlook and Investment Strategy
While the easing of trade tensions provides a positive catalyst, investors should maintain cautious optimism. The market correction appears healthy and necessary following the recent rally to all-time highs. Strategic accumulation during this period could prove profitable as fundamental indicators remain strong.
Source: https://www.newsbtc.com/news/why-is-crypto-down-today-best-crypto-to-buy-as-canada-tariffs-eased/