Although the Bitcoin price rose by almost 10% after Donald Trump partially paused his trade war, it’s naive to think the misery will end immediately. It could happen, but that’s not the most likely scenario. Pseudonymous analyst Rekt Capital is also realistic and examines where Bitcoin might find a bottom.
Bitcoin in Search of a Bottom
According to Rekt Capital, Bitcoin’s Relative Strength Index (RSI) suggests that the digital currency can at least hold the $70,000 level as support.
“When Bitcoin‘s RSI falls below 28 on the daily chart, it doesn’t necessarily represent a bottom. In fact, historically, the real bottom is often still -0.32% to -8.44% below the price at which the RSI first reached a bottom,” the analyst said.
A repeat of this scenario would mean a bottom of approximately $70,000 for Bitcoin. Fortunately, that no longer seems to be the case, as Donald Trump is giving the market some breathing room by pausing his trade war.
Trade War on Pause, Markets Recover
Bitcoin wasn’t the only thing that skyrocketed after Donald Trump pressed the pause button. The US stock market also appreciated this development, and prices shot up like a rocket following the news.
While this is a hopeful development, a huge cloud of uncertainty remains hanging over the financial markets. Essentially, we are at the mercy of Donald Trump’s strategies (or whims).
This is unlikely to change in the coming months. The only thing this does show is that Trump, too, is sensitive to developments in the financial markets and that, theoretically, he could succumb to this pressure.
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