Stocks and Bitcoin are currently rallying. Bitcoin is trading at 86,573 (+2.1%). However, market volatility is expected as the "Liberation Day" announcement by Donald Trump at 4:00 PM could introduce new tariffs, potentially triggering a sharp decline.
🚨UPDATE: BTC has successfully reached the inverse Head & Shoulders target, capturing liquidity at 86,200. A confirmed breakout above the 86,500 resistance could drive the price toward the next key resistance and the flag's target at 87,800.
Additionally, there is a negative Fair Value Gap (FVG) from 86,280 to 87,070.
🚨 Market Alert: High Volatility Expected Due to New U.S. Tariffs 🚨
Today, April 2, 2025, President Donald Trump has declared "Liberation Day" and announced sweeping tariffs on all imports. These measures could disrupt global trade and trigger significant market volatility.
🔸 Key Impact Areas:
1. 25% tariffs on imported vehicles, steel, and aluminum
2. Potential economic strain on major trade partners
3. Market uncertainty and increased risk for investors
📉 What This Means for You: Expect sharp movements in stocks, commodities, and forex markets. Traders and investors should exercise caution, manage risk effectively, and stay updated on developments.
An inverse H&S pattern has formed on the 1-hour timeframe, signaling a potential trend reversal. A confirmed breakout with strong volume could push BTC toward its projected target of 86,600.
Key Technical Observations: 1. The CME gap is now filled, which could act as a strong support upon a retest.
2. Neckline resistance near 84,462 is being tested.
3. A successful breakout above this level may initiate a bullish move toward 86,600.
Watch for volume confirmation to validate the breakout. 👍
BTCUSDT The ETH/BTC ratio dropped to a five-year low of 0.02193. Ether has fallen 39% relative to bitcoin this year. It's the first time ETH has underperformed BTC in the 12 months after a bitcoin reward halving. The last time ether underperformed bitcoin to a similar degree was in the third quarter of 2019, when the ratio dropped to 0.0164, a quarterly decline of 46%
The latest CME gap between 82,850 - 83,910 is acting as a strong resistance, with BTC remaining in a bearish trend. A failed bullish flag has broken downward, targeting 80,200.
🔻 The breakdown was driven by macroeconomic factors, including new tariffs and a stock market downturn, increasing risk-off sentiment across global markets.
🔻 If 80,200 fails to hold, further downside movement toward lower support levels is likely.
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