Bitcoin Bounces Back Following Trump’s Tariff Exemption – Is a Fresh Crypto Rally on the Horizon?

• Bitcoin’s price jumped 6% to reach $92,535 after President Trump revealed a one-month delay on auto tariffs affecting Canada and Mexico.
• For traders, this shift highlights the crucial need to stay updated on economic changes.

Bitcoin’s [BTC] value has been highly reactive to external news, such as changes in President Trump’s policies.

Following a quick drop to about $78K, Bitcoin swiftly bounced back, crossing the $90,000 mark after Trump announced the one-month delay on auto tariffs for both Canada and Mexico.

This announcement sparked a wave of optimism in the market, especially for crypto traders. But are we seeing the start of a clear path toward six figures in Bitcoin’s price?

Overview of the Economic Climate: Bitcoin’s Relief Rally

On March 5th, President Trump declared a one-month delay on auto tariffs for Canada and Mexico, causing a surge in Bitcoin’s price of 6%, raising it to around $92,535.

This rally comes after a significant 15% drop the previous week, which was prompted by tariffs on key trading partners like China.

The $80K support level played a crucial role during the previous dip, while the looming resistance zone is between $95K to $100K.

Moreover, the Open Interest (OI) decreased to a five-month low of $47.27 billion, down from over $50 billion after the elections, suggesting traders are pulling back from risky positions.

If OI continues to decline, the selling pressure from derivatives may rise, leading to more significant price changes.

Historically, aggressive closing of positions like this may signal coming market corrections. This was evident during Bitcoin’s recent 15% drop to $84K, which happened alongside over $8 billion in closed trading positions.

Yet, with renewed bullish sentiment resulting from Trump’s tariff delay and an upcoming highly anticipated crypto summit, might this relief rally gain enough traction for a significant breakout?

The Market is at a Decision Point

While both the cryptocurrency and stock markets reacted positively to Trump’s delay announcement, pushing auto stocks like Ford up by more than 5%, the market still finds itself at a pivotal junction.

Although the short-term relief brings optimism, Trump’s threats of retaliatory tariffs on global trade partners keep the risk of a trade war alive.

From a technical analysis standpoint, Bitcoin is responding noticeably to these large-scale economic changes, with the $85K to $90K range acting as a significant support level.

If the positive sentiment surrounding Trump’s “Let’s Make America Affordable Again” promise continues to grow, Bitcoin may target the resistance zone between $95K and $100K.

Additionally, the recent influx of $22 million into Bitcoin-related ETFs, following a week of substantial outflows, indicates that institutional interest is returning.

However, traders should remain vigilant. While a retest of critical resistance levels seems probable in the near future, a breakout into the six-figure price range remains uncertain.

The broader economic landscape, especially trade-related challenges, could hinder Bitcoin’s ability to break through these important levels.