By Frank Martin (MoneyAmped.com)
Cryptocurrencies remain highly volatile due to uncertainties caused by the trade war between China and the United States. The good news is that President Trump announced a 90-day pause on tariffs imposed on other countries earlier this week, giving room for negotiations. However, he increased the tax on Chinese imports by 34%, causing the yuan, China’s fiat currency, to plummet significantly.
BitMEX founder Arthur Hayes says a weakening yuan could be the needed catalyst to propel Bitcoin to new levels, arguing that the same scenario happened in 2013 when Chinese investors shifted their focus to Bitcoin as the country’s fiat currency witnessed devaluation.
While Hayes holds a bullish view, investors in Bitcoin ETFs have been minimizing their exposure to crypto this week, with Farside Investors reporting $597 million worth of net outflows in the past seven days.
So, can Trump’s move to pause tariffs encourage investors to get back to the market and push Bitcoin above $90k? And if that’s the case, what levels must we monitor keenly? Let’s find them by analyzing the charts.
Bitcoin Price Analysis
After dropping closer to the previous all-time high of $73,721 at the start of the week, Bitcoin has seen a recovery rally, rising to $84,981 at press time. The next level to watch is the 50-day Simple Moving Average of $85,698. If it’s violated, it could be a signal that the price corrective phase is ending. As such, we may see BTC surpass $90,000, with the bulls aiming to push it toward the $96,038 resistance.
On the downside, if the bears succeed in pulling Bitcoin below $73,721, then the coin’s price could slide to $67,400 and later to $65,000.
Ethereum Price Analysis
Ether came under selling pressure in mid-week when onchain lookers reported that Trump-backed DeFi project World Liberty Financial had deposited ETH worth over $5 million into Coinbase Prime, suggesting its plans to sell. The token touched the $1,369 support but has since surged to $1,652.
If the recovery rally continues, we expect a tough battle at the 20-day Exponential Moving Average of $1,783. However, Ethereum could rise to $2,100 if the bulls emerge victorious. Conversely, a sharp fall to $1,200 seems possible if the bears successfully defend $1,783.
XRP Price Analysis
XRP has traded below the $2 psychological level for the better part of the week. However, the bulls have managed to push it to $2.18 as of this writing. Notably, the current price is above the 20-day Exponential Moving Average of $2.09, signaling that the buyers are slowly becoming dominant.
If our assumption is correct, XRP could continue to surge, moving toward the 50-day Simple Moving Average of $2.31 and later to $2.50. On the other hand, a break below $1.65 would mean the current action is a bull trap and that XRP is still on a downtrend. As such, we anticipate a drop to $1.28.
BNB Price Analysis
Prices above $600 have been challenging for buyers to maintain, suggesting massive selling pressure at higher levels. The positive is that BNB has sustained its price above the 20-day Exponential Moving Average of $589.93, improving the prospects of the continuation of the recovery rally.
That said, if the coin rises and stays above $610, it could surge to the $650.61 resistance and then to $700.53, where selling is expected. On the contrary, a drop below $550 puts BNB at risk of plunging to $420.
Solana Price Analysis
News that collapsed exchange FTX and its sister company Alameda Research had unstaked SOL worth at least $6 million pulled the coin’s price near $100 earlier this week as investors thought the two firms were planning to sell to repay their creditors.
However, Solana has been in a recovery mood in the past two days, with its price reaching $131 at press time. If it crosses $135, a surge to $150.69 is likely. Meanwhile, a drop below $100 could allow sellers to drag SOL to $90.50.
