From the ban on Bitcoin China to the tensions in global trade – Why BTC is stronger this time


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Bitcoin is once again at the heart of the turbulence of the global market, experiencing wild price fluctuations as volatility hits both crypto and traditional assets. After being marked as a week with panic sales and fear, the BTC surged more than 11% after President Donald Trump announced a 90-day suspension on mutual tariffs in all countries except China.

This sudden policy shift highlighted Bitcoin’s ability to inject momentum into the market and respond quickly to macroeconomic development. Cryptoquant Analyst Axel Adler shared his perspective on X. The 2021 mining ban in China seriously damaged the trust of the network, causing a price crash of 53%, but the current trade war scenario draws a different picture. Rather than breaking trust in protocols, external economic shocks like tariffs seem to demonstrate the fundamental resilience of Bitcoin.

Unlike the mining ban that disrupts the core infrastructure, today’s macro events reflect economic tensions outside of the foundations of blockchain. As investors seek alternatives amid uncertainty, Bitcoin’s role as a hedge or safe haven asset is back in the spotlight. The question now is whether this momentum can accumulate in a wider recovery, or whether a new shock is waiting for you.

Bitcoin faces critical tests as the Bulls attempt to break out

After weeks of intense sales pressure and uncertainty, Bitcoin is currently facing a critical test that can define the next chapter of the current market cycle. The major cryptocurrencies have revived the $80,000 level, marking the beginning of what could be in the recovery phase. However, the Bulls are currently paying attention to a critical move that outweighs the daily resistance of around $88,700. This is the level that must break to see a sustained uptrend.

This recent recovery has been coming amid a rapid volatility across financial markets, with prices changing not only in crypto but also in global stocks. Continuing trade tensions and the threat of more aggressive US tariffs continue to rattle investors’ trust. Nonetheless, Bitcoin shows new strength.

Shared by top analyst Axel Adler Bitcoin ATH Overview Peak and Drawdown Prices A model that compares the effects of historical macroshocks. He points out that the 2021 mining ban in China fundamentally undermined trust in Bitcoin’s infrastructure, causing a 53% collapse. In contrast, the current revision sees a 28% decrease from an all-time high – a healthier integration.

Bitcoin ATH Overview: Peak and Drawdown | Source: Axel Adler for x
Bitcoin ATH Overview: Peak and Drawdown | Source: Axel Adler for x

Adler emphasizes that Bitcoin’s resilience is not only in its technology, but also in the convictions of its holders. In his words, “Bitcoin is really strong. Or, more precisely, the strong belief in Bitcoin.”

BTC prices are above $81,000 as the Bulls gain momentum

Bitcoin is currently trading above the level of over $81,000 after a sharp surge that rekindled bullish sentiment across the market. This movement occurred amid wider volatility, bringing BTC back into a critical zone where momentum changes crucially in either direction. Price action remains uncertain, but holdings above $80,000 are considered a constructive signal by both traders and analysts.

BTC Testing Critical Liquidity | Source: BTCUSDT Chart from TradingView
BTC Testing Critical Liquidity | Source: BTCUSDT Chart from TradingView

The Bulls are currently focusing on the next major zone of resistance between $85,000 and $87,000, where both the 200-day simple moving average (SMA) and the exponential moving average (EMA) sit. Reclaiming this range is essential to confirm bullish strength and pushing towards the $88,000 mark. If BTC can exceed $88,000 in a conviction, the test at the $90,000 level could soon follow.

However, if the Bulls are unable to regain these moving averages or maintain upward pressure, Bitcoin is at risk of returning to the period of sideways integration or even renewing sales pressure. Traders are closely watching signs of strength or weakness at these technical levels as macro uncertainties continue to weigh on global markets. For now, $80k remains a critical level to hold, but $88,000 is at a level that will break.

Dall-E special images, TradingView chart

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