Bitcoin (BTC) Set to Rise After Trump’s ‘Liberation Day’ Tariffs: What to Expect

On Wednesday, President Trump will announce the tariffs that will be imposed on a range of countries. All the tariffs will take effect immediately. Markets have receded over recent weeks in anticipation of the tariffs, but a much greater degree of certainty could now be restored. Will the U.S. stock market and Bitcoin start reversing their downward trends?

What really matters to the market

For markets, what really matters isn’t news that has the potential to send them rapidly in one direction or the other, it is ‘certainty’, or as close to that as it is possible to get. The news can be really bad or extremely good, but as long as the market is able to price this in, huge spikes up or down can generally be avoided.

Will the tariffs already be sufficiently priced in?

The U.S. stock market, and also Bitcoin, given the strong correlation, have come down relatively hard over the last few weeks due to the large uncertainty over President Trump’s tariffs. The market has not known with any degree of confidence just how harsh the tariffs would be, or how many countries they would affect.

Therefore, once this is known later on Wednesday, when President Trump announces the tariffs at a formal event, it may be that the amount the stock market has already dipped, could be more than what will be priced in, thereby allowing the market to start reversing its current downtrend.

U.S. stock market primed for a bounce

Source: TradingView

The S&P 500 has dipped as much as 10.6% from top to bottom. The horizontal support band from $5,635 down to $5,560 is currently holding, so a rally could take place from here. At the bottom of the chart, the Stochastic RSI, and the Relative Strength Index, are also both in excellent positions for a bounce. 

If one looks at the charts of all the ‘magnificent seven’ stocks, a very similar scenario is happening there. Trend changes are potentially just starting to take place. If you also throw Bitcoin into the mix, this is one more asset perfectly primed for take-off.

Impetus needed for Bitcoin

Source: TradingView

The short-term chart for Bitcoin shows that a ceiling is over the price. This is formed by the horizontal resistance at $85,000, plus the descending trendline. The bulls need some impetus in the form of some bullish event. This could potentially be the U.S. stock market spiking higher.

Weekly chart has $BTC primed for Breakout

Source: TradingView

The weekly view of the $BTC price shows just how primed Bitcoin is for that breakout. Some good horizontal support has developed under the price, and it just remains for the bulls to break the ascending trendline and confirm above. The Stochastic RSI at the bottom of the chart has the indicators very close to the 20.00 level. If this is passed by both indicators, with the blue line on top, momentum should lift the price higher. 

The more unlikely scenario is that $BTC is once more rejected at the descending trendline, and a breakdown to $70,000 occurs. That said, the key is the U.S. stock market, and how it reads today’s tariffs announcement. 

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.