US President Donald Trump has announced a 25% increase in
tariffs on Canadian steel and aluminium, bringing the total duty to 50%. The
decision has affected currency markets, with the euro strengthening against the
US dollar.
The tariff increase has added to concerns over global trade
stability. Analysts note that rising US protectionism could lead to
inflationary pressures. A weaker dollar often drives demand for alternative
assets, including Bitcoin, which some investors see as a hedge against currency
instability.
Dollar Weakens, Alternative Investments Gain
Following the announcement, the euro rose 0.7% against the
dollar, reaching $1.091. The dollar index, which measures the US currency
against others, has fallen to its lowest level since October. Traders are
adjusting portfolios, with some shifting investments toward European assets. Market
participants expect further volatility as they assess the long-term effects of
the new tariffs on trade and economic trends.
BTCUSD Technical Analysis
The BTCUSD H1 chart indicates a downtrend, with the price
following a bearish trend line for the past several days. However, today’s
price action has shown a bullish reversal so far. The chart formed a double
bottom pattern, which triggered a move upward towards higher levels.
The 82000 mark has acted as a key intraday resistance level.
After the formation of three consecutive bearish candles, a bullish engulfing
candle appeared at the 79650 level, signalling potential buying interest.
Despite this bullish move, the bearish trend line is still
in play and may present significant resistance, preventing the upward momentum
from continuing easily on the intraday charts. The bulls may face difficulties
overcoming this barrier without further consolidation or a breakout above the
trend line.
DeepSeek AI Outlines Bitcoin’s 2025 Outlook
Bitcoin has remained below $100,000 for an extended period,
with this level acting as a resistance that could limit upward movement. DeepSeek
AI has outlined three potential scenarios for Bitcoin in 2025, as reported
by Finance Magnates.
In the base case, Bitcoin is projected to range between
$100,000 and $150,000. In a more optimistic scenario, it could reach $350,000,
while a less likely black swan event could push it to $500,000. These forecasts
rely on expected growth in institutional adoption and broader blockchain
integration, though they come with notable uncertainty and volatility.
This article was written by Tareq Sikder at www.financemagnates.com.
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