Bitcoin Holds Steady Amid Macroeconomic Challenges and Rising Gold Prices

Bitcoin has maintained its price above $84,000 amidst macroeconomic uncertainty, with Federal Reserve Chair Jerome Powell warning about tariffs’ potential economic impact. Gold has reached new highs, attracting investors away from Bitcoin as a safe-haven asset. Technical indicators suggest possible upward movement for BTC towards $97,938, but traders are advised to monitor resistance levels closely for potential downside risks.

Bitcoin maintained a steady price above $84,000 this week, showcasing resilience amidst economic uncertainties. Despite ongoing macroeconomic challenges, BTC’s support level remained firm at $84,605, indicating potential for a breakout towards $97,938. This stability contrasts with ongoing trade tensions caused by the US’s tariff policies, which have raised caution among investors, shifting some focus towards alternative safe-haven assets, most notably gold, which recently hit a new peak at $3,357 per ounce.

Federal Reserve Chair Jerome Powell raised concerns regarding the economic implications of increased tariffs, warning that these could exacerbate inflationary pressures while stalling economic growth. Powell emphasised that the Fed might face a challenging balance between controlling inflation and supporting a healthy economy, particularly as incoming data may necessitate adjustments in interest rate policy. Though he acknowledged that tariffs could lead to a temporary inflation spike, President Trump criticized Powell’s approach, suggesting the Fed should have lowered rates sooner.

As gold prices surged, investors’ inclination to seek safety in traditional assets became evident, with Bitcoin experiencing reduced inflows. Data revealed that Bitcoin Exchange Traded Funds (ETFs) recorded more days of outflows than inflows recently, underscoring a possible redirection of funds towards gold. Despite not gaining safe-haven status comparable to gold, Bitcoin’s ability to maintain price stability amidst tumultuous market conditions drew attention and interest from traders.

Technical analysis shows Bitcoin’s price hovering slightly below the crucial 50-day and 200-day Exponential Moving Averages (EMAs), suggesting potential bullish reversals if certain resistance levels are breached. A breakout from the falling wedge pattern could yield a projected price increase of 15%, propelling Bitcoin towards $97,938. Traders are advised to set stop-loss orders below the trendline for risk management. Positive indicators from MACD and RSI reinforce the potential for upward movement, but traders remain cautious of downside risks if resistance fails.

While Bitcoin shows resilience, any failure to breach the established trendline resistance could prompt downward movements towards earlier support levels around $80,000 or even the April low of $74,508. Due caution is recommended for investors as market volatility persists, influenced by broader economic developments and sentiment surrounding tariff impacts.