Bitcoin’s price has fallen below $82,000 this week amidst economic uncertainties, primarily driven by President Trump’s tariff announcements. As investors shift towards safer assets, Bitcoin shows early recovery signs with technical support levels identified. The upcoming Federal Reserve meeting may further influence market direction as trade tensions escalate.

The price of Bitcoin has decreased significantly this week, trading under $82,000, primarily due to President Donald Trump’s newly announced tariff plans. As of Friday morning, Bitcoin was at $81,914.20, reflecting a decline of 1.6% over 24 hours and a cumulative loss of about 5% for the week. Investors are increasingly turning to safer assets like gold amidst growing trade war concerns, leading to a market shift away from cryptocurrencies.

Trump’s decision to impose a 200% tariff on European alcohol imports, in retaliation against the EU’s planned taxes on American whiskey, has heightened market anxiety. This uncertainty is further exacerbated by the anticipated implementation of reciprocal tariffs globally starting April 2, leading to fears of an economic downturn in the United States. Consequently, many investors are reducing their exposure to traditional high-risk assets, like Bitcoin.

In addition to geopolitical tension, the upcoming Federal Reserve meeting on March 18-19 adds to market uncertainty. Policymakers are expected to maintain current interest rates as they navigate the complex scenario of trade disputes likely contributing to inflation pressures. These developments complicate their goal of fostering economic stability while spurring growth.

Technical analysis shows that Bitcoin has maintained critical support above the $78,000 level, with early signs of a recovery above $80,500. Although buyers briefly moved prices above $82,000, they faced resistance around $84,000 where Bitcoin reached a high of $84,200 before retreating. Currently, Bitcoin hovers above $81,200, with the immediate resistance pointed at $82,450. Key barriers exist at $84,000 and $85,000.

Should Bitcoin successfully close above $85,000, momentum could shift towards $86,500 or potentially $88,000. Conversely, failure to breach the $82,450 resistance may lead to renewed selling pressure, with immediate supports around $80,500, $79,600, and continuing down to $76,500. The short-term trajectory of Bitcoin remains contingent on macroeconomic factors alongside technical indicators in the succeeding days.

In summary, Bitcoin’s price has undergone a substantial decline, driven by external economic uncertainties. As investors seek safer assets, the upcoming Federal Reserve meeting and tariff discussions create further volatility in the cryptocurrency market. Key resistance and support levels are critical for Bitcoin’s direction, with traders closely monitoring market trends and developments in global economic policies.

Original Source: coincentral.com

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