Bitcoin price rebound 2.3% to reclaim the $84,100 mark on Friday, after China announced retaliatory tariffs on U.S. imports. Will BTC price trajectory decouple from US stocks?

Bitcoin holds key support as China escalates US trade war

On Friday, Bitcoin price rose 2.3% after China imposed a sweeping 34% tariff on U.S. imports, escalating global markets tensions.

This latest development intensifies fears of a prolonged trade war, sending shockwaves across traditional financial markets, prompting investors to reassess their portfolio.

Notably, China’s retaliatory measure comes just 48 hours after former President Donald Trump had introduced fresh tariffs on Chinese imports along with multiple other nations.

Drawing insights from the CoinMarketCap chart above, BTC price briefly dipped to $81,600 before rebounding above the $84,100 mark, at press time.

While BTC’s price action remains under pressure, BTC appears to be attracting more inflows, as investor look diversify from potential impact of China’s tariffs on US firms revenues.

Bitcoin’s divergence from U.S. stocks signals decoupling trend

Despite the negative sentiment surrounding the escalating trade war, Bitcoin has maintained its footing above $82,000 throughout the week. This stability contrasts with the S&P 500, which has recorded a 6% decline over the same period, closing at lower levels each day.

The divergence between Bitcoin and traditional equities suggests a potential shift in investor behavior. As U.S. stock markets falter under the bearish overhang of the ongoing trade war, Bitcoin’s relative resilience could position it as a safer store of value.

If Bitcoin price can form a steady support base around the $81,000 level, it could beging attracting hedge demand from investors looking to mitigate exposure to stock market volatility.

Bitcoin price forecast: $85K breakout ahead of $81,000 support holds

As China’s retaliatory measures introduces fresh volatility, Bitcoin price forecast signals now indicate potential for a breakout above $85,000. However, this breakout remains contingent on BTC maintaining critical support at $81,000.

The daily Bollinger Bands indicate a tightening range, with BTC currently trading near $84,009.24. The lower band at $80,927.39 reinforces strong demand at this level, while the upper band at $88,104.90 signals a possible bullish breakout if momentum strengthens.

The Nasdaq 100’s weakness further supports Bitcoin’s resilience. With major tech stocks like Apple and Cadence Design Systems (CDNS) posting losses, BTC’s ability to hold firm above $82,000 suggests it could be decoupling from U.S. equities.

As investors look to avoid the impact of China’s tarrifs on US firms, many investors could lean into BTC to mitigate the downside risks, potentially driving up Bitcoin prices towards $85,000.

The Relative Strength Index (RSI) stands at 47.22, reflecting neutral sentiment but trending slightly upward. A move above 50 would confirm renewed bullish momentum. Meanwhile, trading volume remains moderate at 30,140 BTC, suggesting accumulation rather than aggressive selling. If buying pressure intensifies, BTC could challenge resistance at $85,000, with a decisive break opening the door toward $88,000.

Conversely, a failure to sustain $81,000 could trigger $793 million in liquidations, amplifying downward pressure. However, given Bitcoin’s historical strength at this level, buyers remain well-positioned to defend it.

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ibrahim

Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.