- Trump extended the China tariff deadline by 90 days, and Bitcoin jumped to $119,800 before returning to $119,000.
- Key inflation data releases this week could boost September Fed rate cut chances, currently at 86.4%.
- Analysts see two scenarios: Bitcoin will form a higher bottom over the weeks or test $120,000 resistance levels soon.
Bitcoin experienced a significant price surge following President Donald Trump’s decision to extend the deadline for tariffs on Chinese goods. The cryptocurrency reached $119,800 after the announcement, demonstrating the market’s sensitivity to geopolitical developments.
Trump Delays China Tariff Implementation
According to CNBC reports, President Trump signed an executive order extending the proposed tariffs on Chinese goods by 90 days. The original deadline was set to expire on August 12, creating market uncertainty before the extension announcement.
The tariff delay sparked immediate bullish sentiment across financial markets. Bitcoin’s price responded positively to the news, climbing toward its all-time high of $123,000. The cryptocurrency had earlier broken above $122,000 during the trading session.
However, the rally proved short-lived as Bitcoin retreated to $119,000 following the initial spike. Market analysts remain divided on whether this represents a sustainable uptrend or a temporary “dead cat bounce” pattern.
Crypto analysts have identified a CME gap below the $119,000 level that Bitcoin typically fills during market movements. This technical indicator suggests potential downward pressure in the short term.
The cryptocurrency market faces additional catalysts this week with U.S. inflation data scheduled for release. The Consumer Price Index (CPI) data drops on August 12, followed by the Producer Price Index (PPI) figures on August 13.
These inflation metrics carry significant weight for Bitcoin’s trajectory. Cooling inflation data could strengthen the case for Federal Reserve rate cuts in September, with current odds at 86.4% for a rate reduction at the next FOMC meeting.
Two Potential Bitcoin Scenarios Emerge
Market analyst Altcoin Sherpa outlined two possible paths for Bitcoin’s near-term performance. The first scenario involves a pullback and formation of a higher time frame bottom, potentially taking weeks to develop before establishing a more sustainable upward move.
The alternative scenario suggests that Bitcoin could reverse course and test liquidity at around $120,000. This movement likely coincides with increased treasury activity and broader macroeconomic events affecting market sentiment.
The cryptocurrency’s current position reflects broader market uncertainty surrounding trade relationships and monetary policy. Bitcoin’s correlation with traditional risk assets influences its price during major geopolitical announcements.
Traders are closely monitoring both technical levels and fundamental developments. The combination of trade policy extensions and upcoming inflation data creates a complex backdrop for Bitcoin’s next directional move.
The extended China tariff deadline removes one source of immediate market stress. Still, Bitcoin faces ongoing challenges from technical resistance levels and macroeconomic headwinds that could influence its trajectory through the remainder of August.
Disclaimer
The content shared on KryptoVaultDaily is for informational purposes only and does not constitute financial or trading advice. We do not offer guarantees and assume no responsibility for investment decisions based on the material provided. Always research and seek guidance from a licensed financial advisor before trading cryptocurrency or investing.
