An absolute bloodbath ensued on Thursday as the market reacted to President Trump’s reciprocal tariffs announcement. The S&P 500 closed down nearly 5% lower, while the Nasdaq dropped nearly 6%. In the midst of this, Bitcoin was up 0.5%, and has climbed around 1.5% early on Friday. Worst stock market plunge since COVID Markets went into a headlong plunge on Thursday as they reacted to the ruinous tariffs that the Trump administration had imposed on the rest of the world. Initially expecting around 10%, the market was then shocked to learn that much higher tariffs would be applied to a plethora of countries that enjoyed a trade surplus with the US. Source: TradingView Thursday’s plunge in the S&P 500 was the worst since June 2020, when fears of a second wave of COVID hit the U.S. stock market. The cause of the latest big reversal was much to do with the complete shock that the severity of the tariffs had on the market. 10% across the board was one thing, but the extra swingeing tariffs added to selected countries was simply staggering. Global supply chains are in absolute disarray, and it is going to take a huge amount of negotiation and diplomacy to get things back on track - although it might be argued that the US tariffs move will have far-reaching consequences for future global trade. Fed Chair Powell speech takes on added importance Jerome Powell, Chairman of the Federal Reserve, will make a speech later today. After Thursday’s market plunge, and with U.S. CPI data to be announced next week, this speech has taken on added importance. With the economy in disarray, and certain areas of it probably already in recession, the Fed chair may have his hand forced, with cuts potentially to come sooner, and in greater measure. $BTC price holds up Source: TradingView The short-term chart for Bitcoin shows just how well the price has held up while all hell was being let loose in the U.S. stock markets. In fact, the price is once more approaching the descending trendline. The $BTC bulls have had to stop right here as they have run into resistance, and this continues up to $85,240. However, on their side, they have the Stochastic RSI indicators rising fresh from the bottom, bringing momentum. Time will tell whether the price breaks through, or whether it is rejected and the sideways chop continues. Can the $BTC bulls break through the descending trendline? Source: TradingView The weekly chart for Bitcoin is still on a knife edge. There are three days left in the week and the bulls need to hold the price where it is in order to pass through the descending trendline. If the trendline can be breached, and the next weekly candle is able to confirm above, it could be off to the races. Having said that, if the bulls are unable to push on through, there is really only one more week left in this descending triangle pattern. If the support fails then $70,000 beckons. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
