- Bitcoin falters as gold sets a fresh all-time high as US trade tariffs and economic reports wear on.
- There is hope among analysts for BTC to overcome $91,000, with some having sights on $112,000.
- Market structure is changing, making one wonder about a potential big rally.
Bitcoin fluctuated on March 27 among economic data and US tariffs that influenced sentiment.
BTC was unable to keep pace with the rally in gold, with risk assets such as stocks and crypto coming under selling pressure.
The US economy was seen to have grown by 2.3% in the fourth quarter, which is a tad higher than expected.
Initial jobless claims were below forecasts, something that might persuade the Federal Reserve to maintain higher interest rates for longer.
Tariffs and Their Market Impact
The larger worry for the market, however, was new tariffs on imported cars declared by former US President Donald Trump. This was added to other tariff worries, with new tariffs to come into effect on April 2.
Analysts noted that the trade restrictions had significant potential to impact the country, especially the $10 billion automobile export market to the US.
Risk assets grappled with these trends, with gold being the big beneficiary. The price of gold climbed to a new all-time high of $3,059 an ounce, maintaining its steady climb while Bitcoin was in limbo.
Gold’s market capitalization has risen by a staggering $7 trillion over the past year, bringing it to within a hair’s breadth of the $21 trillion mark for the first time in history.
Bitcoin’s Next Move
In spite of the uncertain price action, there were still some traders who were optimistic about Bitcoin.
One analyst was expecting a rise to $91,000, citing a breakout pattern on the 4-hour chart. Another analyst commented that Bitcoin just exited a months-long downtrend, suggesting more gains are on the horizon.
There were even some traders who predicted that BTC might reach as much as $112,000 in the next couple of months.
As uncertainty prevails, the market structure of Bitcoin seems to be changing, and everyone is asking if a massive rally is imminent.
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