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Bitcoin has surged above $109,000 following a significant delay in proposed EU tariffs by President Trump, indicating strong market reactions.
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Analysts suggest that this temporary easing of trade tensions could catalyze a rally in Bitcoin’s price, potentially leading to new highs.
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According to a report from COINOTAG, market sentiment remains bullish as traders anticipate that favorable negotiations could support upward price momentum.
Bitcoin’s price rebounds above $109,000 following President Trump’s tariff delay announcement, signaling potential for a new all-time high amid eased trade tensions.
Trump Extends EU Tariff Deadline to Boost Market Confidence
Bitcoin’s resurgence over the $109,000 mark is closely linked to President Trump’s recent announcement to extend the deadline for a proposed 50% tariff on European Union goods. This move has alleviated immediate trade fears, infusing optimism into Bitcoin and other risk assets.
The announcement, made after discussions with European Commission President Ursula von der Leyen, indicates that the EU is seeking additional time to negotiate a constructive deal with the United States. “To reach a good deal, we need the time until July 9,” von der Leyen noted in her remarks.
Market Reactions and Investor Sentiment
The delay of the tariffs comes after a period of heightened tension in financial markets, which had previously seen Bitcoin drop below the $108,000 threshold. This volatility highlights the cryptocurrency’s sensitivity to macroeconomic developments. Market participants have expressed relief at the tariff extension, suggesting it may contribute to Bitcoin’s potential upward trajectory.
“Bitcoin will pump again,” stated an anonymous investor on social media, while another trader added, “I hope they settle everything, and let the market go super bullish,” reflecting a collective hope among traders for sustained momentum.
BTC Price on Track for an Eighth Consecutive Weekly Close
The closing of Bitcoin above $109,000 marks the seventh consecutive week of bullish performance. If this trend continues, June 1 could see an eighth straight weekly gain, a historical precedent that has often signaled further positive movements in the market.
Crypto analyst Carpe Noctom highlighted that such sequences have only occurred thrice since 2014, generally leading to extended periods of price increases in the following months. “After eight consecutive positive weekly closes, the market always shows strength six months and one year later,” he explained.
Key Resistance and Support Levels
The crucial level for Bitcoin is the previous all-time high of $111,900, which must be converted into a support level for further price acceleration. Analysts predict that a successful breach of key resistance zones between $109,588 and $111,980 could propel Bitcoin towards a new record high of approximately $130,000.
Conversely, trading below the weekly close of $109,000 risks a retreat to significant demand zones between $104,500 and $106,000. Daily support levels to monitor include $102,500 and the psychological benchmark of $100,000 which have historically offered resilience.
Future Outlook and Market Viability
As traders remain optimistic about the tariff negotiations, the market is poised for potential advancements. Michael van de Poppe, a noted trader, emphasizes the vitality of closing above previous highs. He projects that maintaining a foothold between $105,500 and $107,000 could lead Bitcoin to new highs in the forthcoming weeks.
Conclusion
In summary, Bitcoin’s recent price action illuminated by geopolitical factors showcases its volatility and sensitivity to global economic shifts. With the tariff deadline extended, market participants have reason to be cautiously optimistic, positioning for potential price rallies in the coming weeks. Traders should remain vigilant of key support and resistance levels while market negotiations continue to unfold.
