Today in crypto, US and China representatives signal easing trade tensions, Bitcoin is retesting the golden cross, a bullish pattern that preceded past parabolic rallies. Meanwhile crypto traders’ “typical rationalization” behavior by pointing to Trump’s tariffs as the reason for the market dump.
US and China representatives signal easing trade tensions
Representatives from the United States and China eased the heated rhetoric around trade policies after tensions between the two countries flared up this week due to China’s export controls on rare earth minerals and US President Donald Trump’s announcement of an additional 100% tariff on China.
China’s Ministry of Commerce signaled a willingness to negotiate on the rare earth export control proposal and other trade issues on Sunday, which came alongside a statement from Trump. In a Sunday Truth Social post, Trump wrote:
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I. The USA wants to help China, not hurt it!!!”
Market analysts said that signs of de-escalation from Trump could pump financial markets on Monday, reversing the price decline that impacted crypto markets over the weekend.
Bitcoin retests golden cross, a break above could trigger major rally: Analyst
Bitcoin is retesting the “golden cross,” a bullish technical pattern that has historically preceded rallies, according to crypto market analyst Mister Crypto.
In a Sunday post on X, the analyst shared a chart noting that Bitcoin’s (BTC) previous golden crosses led to gains of 2,200% in 2017 and 1,190% in 2020. With BTC currently hovering near $110,000, he suggested that holding above the level could ignite another parabolic move.
“The setup looks incredibly strong,” he wrote, adding that a confirmed breakout could “absolutely explode” Bitcoin’s price in the coming weeks.
A golden cross is a bullish trading signal that happens when a short-term moving average, usually the 50-day, crosses above a long-term moving average, often the 200-day. It signals that momentum is shifting from bearish to bullish, meaning prices may start rising.
Crypto traders blame Trump’s tariffs in search of ‘singular event’: Santiment
Crypto retail traders were quick to blame Friday’s broader crypto market decline on US President Donald Trump announcing a 100% tariff on China, as they often look for something to point the finger at during downturns, according to Santiment.
Analysts, however, say the reason for the market slump runs deeper than the tariffs alone.
“This is typical ‘rationalization’ behavior from retailers, who need to point to a singular event as the reason for a cataclysmic downturn in crypto,” Santiment said in a report on Saturday.
“After the crash, the crowd quickly jumped to collectively come to a consensus as to what the flush could be attributed to,” Santiment said, referring to the increase in social media discussions related to both the crypto market and US-China tariff concerns.
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