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Bitcoin prices climbed on Tuesday, extending a rebound from recent five-month lows as dip-buying emerged in the world’s largest cryptocurrency. However, market sentiment remained fragile due to escalating trade tensions sparked by U.S. President Donald Trump’s sweeping tariff measures.
By 01:19 ET (05:19 GMT), Bitcoin rose 3.6% to $79,673.5, after briefly crossing the $80,000 mark earlier in the day. The broader crypto market also saw modest gains, though it continued to grapple with steep losses from previous sessions.
Bitcoin Tracks Recovery in Broader Markets
The rebound in Bitcoin mirrored a broader recovery in global financial markets. Wall Street indexes recovered most of their Monday losses, while Asian equities also traded higher. U.S. stock index futures pointed to a positive open in early Tuesday trade.
Despite the rebound, Bitcoin remains down 4.2% over the past two days, after briefly hitting a five-month low on Monday amid a sharp drop in global risk appetite following Trump’s tariff announcements.
Last week, President Trump imposed reciprocal tariffs on key trading partners, with broader and steeper duties than markets had expected. Over the weekend, he doubled down on his stance, threatening further tariffs on China unless Beijing removes its retaliatory measures. He also warned of upcoming tariffs on pharmaceutical and semiconductor imports, raising concerns about additional pressure on global supply chains and investor sentiment.
Bitcoin Signals “Death Cross” — A Bearish Technical Indicator
Despite the short-term recovery, technical indicators point to potential further weakness in Bitcoin. The cryptocurrency this week formed a “death cross” — a bearish chart pattern in which the 50-day moving average falls below the 200-day moving average.
According to data from Investing.com, this signal may suggest continued downward pressure in the near term, especially in the absence of any strong positive catalysts. Analysts also noted that some long-term Bitcoin holders have been moving coins to exchanges in recent weeks, potentially in preparation for large-scale selling.
Altcoins Rebound, Ether Bounces From 2-Year Low
Altcoins followed Bitcoin’s recovery, although most remain deep in the red from recent sessions.
- Ethereum (ETH) rose nearly 3% to $1,585.96, bouncing back from a two-year low.
- XRP climbed 6.9% to $1.8857.
- Solana, Cardano, and Polygon gained between 7% and 9%.
In the meme token space, Dogecoin added 6.8%, while the $TRUMP token edged slightly higher from near record lows.
While the market saw a momentary bounce, the looming implementation of Trump’s tariffs on Wednesday and the lack of bullish momentum continue to cast a shadow over crypto markets. Traders remain cautious, watching for further signals from both the macroeconomic front and the charts before calling a broader recovery.
