Bitcoin price today climbed 3.7%, rebounding from earlier losses as global markets responded to China’s 125% retaliatory tariff on U.S. goods. Despite fears of a looming recession, BTC bounced back to trade above $82,700, after dipping to $74,467 earlier in the week.
This sharp rise reflects growing investor optimism. Traders seem confident that the U.S.-China tariff standoff might soon lead to a negotiated solution. The total crypto market cap also saw a boost, crossing $2.6 trillion as major coins like Ethereum, XRP, and Cardano posted modest gains.
Markets React to Tariff Escalation
While China raised tariffs on U.S. imports to 125%, the U.S. responded with an even higher rate of 145%, prompting warnings from economists and raising fears of a global economic slowdown.
China criticized the U.S., calling the move “unilateral bullying” and a violation of trade norms. These tit-for-tat policies have increased the odds of a U.S. recession, with Moody’s Chief Economist Mark Zandi maintaining a 60% probability.
Interestingly, this economic risk has sparked bullish sentiment for Bitcoin. In the face of a recession, many expect the Federal Reserve to cut interest rates, a move that typically boosts risk assets like crypto.
Technical Outlook: Can Bitcoin Break Higher?
Despite warnings from some analysts that the current BTC rally may be short-lived, technical patterns suggest otherwise. Bitcoin has formed two classic bullish setups:
- A Cup and Handle (C&H) pattern, which hints at a potential move toward $122,000 if the trend holds.
- A Broadening Wedge (Megaphone) pattern, made of diverging trendlines, which also supports a bullish outlook.
For now, BTC may retest the top of the cup near $74,000–76,000 before resuming its upward trajectory. A strong bounce from that zone could see the price break above its all-time high of $109,200 and head toward the projected C&H target.
However, a drop below the lower wedge trendline would signal weakness and possibly invalidate the bullish case.
