Bitcoin Rebounds 3% After Trump's Tariff Pause

Crypto prices experienced a significant rally following the announcement of a 90-day tariff pause by President Trump. This pause helped stabilize the market, which had previously seen a sharp decline due to retaliatory tariffs. Bitcoin, in particular, rebounded from a five-month low of approximately $74K to find support near its 365-day moving average, which stands at around $76.1K. This technical support played a crucial role in the recovery, as past observations have shown that a sustained drop below this average could signal the start of a prolonged bear market.

Despite this technical rebound, overall investor sentiment remains weak. According to CryptoQuant’s Bull Score Index, Bitcoin currently registers a reading of 10, its lowest since November 2022. This depressed score reflects an overall cautious investor outlook and indicates a low probability of an enduring rally. The recent recovery might be more of a short-term correction than the onset of a bullish trend. CryptoQuant reports that if this score continues to linger below the 40 mark, market conditions could resemble those seen in previous bearish cycles.

Looking ahead, Bitcoin may face resistance around $84K and $96K, suggesting that any rally is still vulnerable to reversal if bullish conditions do not continue to improve. These resistance levels have historically served as markers within this trading cycle, potentially acting as barriers should the present rally fail to translate into a sustained shift in market sentiment. Overall, while the tariff pause has provided a temporary breather, the market remains cautious, eagerly awaiting more robust bullish signals.