- Bitcoin surged 6% to $92,535 after President Trump announced a one-month delay on auto tariffs for Canada and Mexico.
- For traders, these shifts emphasize the importance of staying attuned to economic developments.
Bitcoin’s [BTC] price has been reacting strongly to external factors, such as President Trump’s policy shifts.
After a steep dip to around $78K, Bitcoin rebounded sharply, crossing the $90,000 mark after Trump announced the delay on auto tariffs for Canada and Mexico.
This triggered renewed optimism in the markets, especially among crypto traders. But does this momentum suggest a clear path toward a six-figure target?
Economic overview: A Bitcoin relief rally
On the 5th of March, President Trump announced a one-month delay on auto tariffs for Canada and Mexico, leading to a 6% surge in BTC’s price, bringing it to around $92,535.
This rebound followed a sharp 15% decline the previous week, triggered by tariffs on major U.S. trade partners, including China.
The $80K support zone, tested during the previous dump, proved crucial, while the $95K-$100K resistance range looms overhead.
The dip in Open Interest (OI), dropping to a 5-month low of $47.27 billion after staying above $50 billion post-election, signals significant de-risking.
If OI continues to fall, sell-side liquidity from derivatives could intensify, triggering larger price movements.
Source: Coinglass
Historically, aggressive position closures like this often precede market corrections, as seen during Bitcoin’s 15% drop to $84K last week, which was accompanied by over $8 billion in closed positions.
However, with bullish sentiment rebuilding after Trump’s tariff delay and the “highly anticipated” crypto summit, could this relief rally gain enough momentum to trigger a full breakout?
The market is at a crossroads
Although both the crypto and stock markets cheered Trump’s tariff delay announcement – sending auto shares like Ford up over 5% – the market remains at a crossroads.
While the short-term relief has fueled optimism, Trump’s threats of “reciprocal” tariffs on global trade partners keep the broader risk of a trade war in play.
From a technical perspective, Bitcoin is reacting strongly to these macroeconomic shifts, with $85K – $90K acting as a key support level.
Source: TradingView (BTC/USDT)
If the bullish sentiment around Trump’s “Let’s Make America Affordable Again” promise continues to build, Bitcoin could target the $95K-$100K resistance zone.
Additionally, the recent positive ETF inflow of $22 million, after a week of heavy outflows, suggests institutional interest is picking up again.
However, traders should stay on alert. While a retest of key resistance zones is increasingly likely in the short term, a breakout into six-figure territory remains uncertain.
The broader economic landscape, including trade tensions, could challenge Bitcoin’s ability to push through these critical levels.
