Bitcoin Surges 2% to $88,772 as US Eases Trade Tariffs

Bitcoin (BTC) approached $90,000 at the March 24 market open, with analysts warning of conflicting signals in the market. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $88,772 on Bitstamp, its highest levels since March 7. This price movement followed a trend in the broader market, where the S&P 500 and Nasdaq Composite index were up 1.6% and 2%, respectively, at the time of writing.

The positive reaction in the market was attributed to news that the US government was easing the severity of new trade tariffs set to become effective on April 2. According to trading resource, sector-specific tariffs would emerge instead of blanket rules, which contributed to the market's upward momentum. Additionally, rumors of the US potentially using gains on its gold reserves to purchase BTC added to the crypto market's momentum. Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, suggested that realizing gains on gold holdings could be a budget-neutral way to acquire more Bitcoin.

Keith Alan, co-founder of trading resource Material Indicators, noted that the news of the administration considering selling gold reserves to buy Bitcoin had given speculators some hope. He highlighted that with gold in all-time high territory and BTC in a correction, this would be an opportune time to take some profit on gold and buy Bitcoin. However, Alan also laid out two key prerequisites for sustained BTC price upside: the 21-day simple moving average (SMA), currently at $84,674, as well as the 2025 yearly open at around $93,300, must both be reclaimed as support.

Alan explained that with conflicting signs and signals, knowing validation/invalidation levels is crucial to determine if Bitcoin is returning to a path to all-time high territory or if this is a developing bull trap. He argued that until the yearly open is reclaimed, there is an increased likelihood that the price will retest the lows. Alan concluded that if and when that happens, he would be buying those dips when buying resumes. This analysis underscores the importance of key support levels in maintaining Bitcoin's upward trajectory and avoiding new lows.