Cryptocurrencies Remain Steady as US-China Tariff War Intensifies

The escalating tariff war between the United States and China has sent ripples through global markets, with cryptocurrencies showing signs of stability amidst the turmoil. Effective Saturday, China raised levies on U.S. imports to 125% in response to President Donald Trump's 145% tariff on Chinese goods. This move has sparked concerns about the potential reversal of the midweek tariff-pause relief, which had seen cryptocurrencies recover alongside global markets.

Bitcoin, the leading cryptocurrency, has shown resilience, holding steady above $82,000. Ethereum, the second-largest cryptocurrency by market capitalization, has also maintained its position above $1,550. Ripple (XRP) has held onto $2.00, indicating a stable market despite the escalating trade tensions. The Relative Strength Index (RSI) for Bitcoin is showing early signs of a corrective bullish wave, with the indicator holding at 48.94 and on the verge of crossing the upper neutral half. This suggests that bulls have the upper hand and are likely to push for a higher close during the American session.

The Moving Average Convergence Divergence (MACD) indicator for Bitcoin revealed a potential buy signal, likely to manifest with the MACD line flipping above the signal line. Traders watching this indicator may increase exposure to BTC, betting on a larger price increase targeting the 200-day Exponential Moving Average (EMA) at $85,055. However, Bitcoin still sits below the 50-day EMA at $85,629, the 100-day EMA at $87,924, and the 200-day EMA, not to mention the 3-month descending trendline. These critical levels challenge the push for higher price levels and could represent key pain points leading to losses below the $80,000 mark.

Ethereum has retested and defended its descending channel support, igniting an immediate rebound to $1,694 after President Trump paused tariffs on Wednesday. However, bulls faced weakness in their push for more gains on Thursday, leading to a minor dip to $1,477. Interest in Ethereum has been growing in the last 24 hours, suggesting that a breakout from the 4-month descending channel could be seen soon. Ethereum bulls have several immediate targets, including the 50-day EMA at $2,034, the 100-day EMA at $2,367, and the 200-day EMA at $2,639. However, Ethereum still trades below three EMAs, which poses a risk to the bullish momentum. Moreover, the descending channel has been forming since mid-December, and breaking free might take longer than expected.

Ripple (XRP) has built support at $2.00, with the MACD and the RSI indicators responding positively, hinting at further price increases into the weekend. With the RSI neutral but holding at 44.52 and the MACD likely to send a buy signal in the daily chart, XRP could affirm support at $2.00 and chart the path to $2.24, a resistance area highlighted by the 50-day EMA and the 100-day EMA.

The escalating tariff war between the United States and China has pushed businesses to the brink, threatening decades-long trade ties. The cost of tariffs will eclipse any tax cuts most households see, according to experts. The rising trade barriers are threatening sales and upending supply chains that have been built over decades. The major U.S. stock indexes went on a wild ride this week as President Donald Trump's tariff plan, and the response from China, weighed on financial markets. The mere threat of tariffs sent crypto prices spiraling precipitously in February, highlighting the sensitivity of the market to geopolitical tensions.