Bitcoin Reclaims $84K as Traders React to Modest Tariff Relief

Bitcoin has regained some ground this week, trading around $84,000, as market sentiment improved following a temporary trade tariff relief. The White House’s exemption of certain Chinese electronic imports brought brief optimism, though President Trump has indicated more tariffs may be on the way.

As Bitcoin’s price hovers near this level, traders are monitoring technical signals and the broader economic environment to assess whether BTC can maintain its upward momentum in the face of ongoing global uncertainty.

Policy Relief Sparks Temporary Optimism

Bitcoin’s bounce this week followed the White House’s announcement of exemptions on some electronic imports from China, products that make up a significant portion of China’s trade surplus with the U.S. This provided a brief respite from the escalating trade tensions.

However, President Trump confirmed that new tariffs on semiconductors and other strategic technologies are still being considered, signaling the administration’s ongoing effort to rebalance trade with China. This leaves the door open for more economic measures in the near future.

While the tariff relief sparked some optimism, Bitcoin’s price remains cautious. At the time of writing, BTC is trading at $84,382, up 0.13% on the day and over 10% on the week. The uncertainty surrounding the trade war, especially with the possibility of further tariffs, continues to influence the broader crypto market, and Bitcoin has yet to experience significant upward movement.

Technical Indicators Support a Recovery Narrative

Bitcoin’s recent recovery isn't just a reaction to trade policy relief—technical indicators are showing signs of growing strength. On April 12, Bitcoin broke through a crucial resistance level, signaling that its corrective phase may be coming to an end. Glassnode reported that around 40,000 BTC has been accumulated at the $79,000 mark, which highlights the confidence of long-term investors stepping in at these levels.

Further technical indicators support the narrative of a potential rally. The 20-day exponential moving average (EMA) is trending upwards, and the relative strength index (RSI) remains firmly in positive territory, both of which suggest bullish momentum. Chart analysts like John Bollinger have pointed to the formation of a “Bollinger Band W-bottom,” a pattern that often precedes a further upside movement. However, Bollinger also emphasized that confirmation is still needed for this pattern to play out fully.

Adding to the optimism, BitMEX co-founder Arthur Hayes recently commented on the broader macroeconomic picture, highlighting a potential shift in U.S. policy in response to the ongoing bond market crisis. In a post on X, Hayes suggested that this situation could set the stage for policy intervention, which might push Bitcoin into an “up only mode.” This adds another layer of optimism, with traders speculating that a shift in policy could provide the spark for a sustained rally in the crypto market.

The US Dollar Index and Bitcoin’s Prospects

Looking ahead, all eyes will be on the performance of the US Dollar Index (DXY), which is currently below the 100 level. Why does this matter for Bitcoin? A weaker US dollar typically signals a favorable environment for Bitcoin. As the dollar weakens, investors often seek alternatives like Bitcoin, which has become increasingly seen as a hedge against inflation and currency devaluation.

If Bitcoin holds above the $82,000 mark—particularly the 20-day exponential moving average (EMA)—it could signal the start of a more sustained rally. In fact, some analysts predict Bitcoin could test new highs near $89,000 or even $95,000 in the coming weeks. This potential bullish trend might not just benefit Bitcoin but could also have a ripple effect across the cryptocurrency space, lifting select altcoins in its wake.

That being said, Bitcoin is not out of the woods just yet. Bears might still take control, and if Bitcoin fails to hold key support levels, it could dip back down to around $78,500. A lot is riding on the price action in the coming days, and traders will be watching closely to see if the bulls can defend these higher levels.

What’s Next for Bitcoin?

With Bitcoin above $84,000, the crypto market is facing a critical moment. The recent bounce from tariff relief is encouraging, but Bitcoin’s future will hinge on technical trends and the wider economy, especially the US dollar.

A weaker dollar could boost prices, but ongoing trade tensions and global uncertainty may keep the market on edge. It remains to be seen if Bitcoin can hold onto its momentum or if external factors will cause a downturn.