Bitcoin experienced a significant rise following President Trump's announcement of a temporary delay on auto tariffs for Canada and Mexico.
Bitcoin's Reaction to External Factors
Bitcoin's price traditionally responds swiftly to external economic and political changes. President Trump's announcement of delaying auto tariffs on Canada and Mexico led to a surge in the cryptocurrency's price above $90,000, sparking optimism in the market, although it is uncertain if it will reach a six-figure mark.
Economic Overview: A Bitcoin Relief Rally
On March 5th, President Trump announced a one-month delay on auto tariffs, causing a 6% rise in Bitcoin's price to $92,535. This rebound followed a 15% decline the previous week due to tariffs on major US trade partners, including China. The $80K support zone proved crucial in the previous dump, while the $95K-$100K resistance range remains ahead.
Technical Analysis and Future Prospects
From a technical perspective, Bitcoin is reacting strongly to macroeconomic shifts, with $85K – $90K acting as a key support level. If the positive sentiment around Trump's promises continues to build, Bitcoin could target the $95K-$100K resistance zone. However, traders should remain vigilant, as broader economic conditions, including trade tensions, could challenge Bitcoin's ability to reach these levels.
While the tariff delay has prompted a positive market reaction, the overall picture remains uncertain due to ongoing economic tensions.
