Market Turmoil: Bitcoin Plunges Amid Trade War Fears, Altcoins Show Mixed Performance
The cryptocurrency market experienced a downturn on Thursday, dropping by 2.58% as renewed uncertainty surrounding US trade relations weighed on investor sentiment. US Treasury Secretary Scott Bessent’s statement that trade negotiations with China are “stalled” and the temporary reinstatement of trade barriers by a US appeals court further fueled market anxieties.
Bessent indicated that the stalled discussions could potentially lead to a high-stakes meeting between President Donald Trump and Chinese President Xi Jinping.
There is no better negotiator than @POTUS. President Trump is carrying out the long-overdue work of rebalancing the global economy to the benefit of the American people. I am confident that the Chinese, and the rest of our trading partners, will come to the table thanks to his…
Trump’s tariff policies have faced domestic challenges, with a US court initially blocking the measures. However, the Trump administration appealed the decision, and the US Court of Appeals for the Federal Circuit temporarily reinstated the tariffs pending the appeal’s outcome.
The resurgence of trade tensions has dampened investor confidence, triggering a sell-off in Bitcoin (BTC) and other major altcoins. Bitcoin briefly dipped below $106,000, while Ethereum (ETH) fell below $2,600. Other prominent altcoins, including Ripple (XRP), Solana (SOL), and Dogecoin (DOGE), experienced declines ranging from 3% to 7% as the market turned bearish.
DEXE Defies Downturn with Bullish Surge
Amidst the widespread market decline, Dexe (DEXE) stood out with a 13.07% surge on Thursday, trading at $14.09 at the time of writing. This sudden increase coincides with the ongoing DeXe MemeMania, a meme coin contest scheduled to conclude on May 30th.
DEXE’s upward momentum is nearing a point where it could shift the Supertrend indicator to green, signaling a potential bullish trend reversal. Furthermore, the Moving Average Convergence Divergence (MACD) indicator and its signal line are generating a buy signal, supported by a recent positive crossover and a fresh wave of green histogram bars.
The bullish engulfing candle pattern breaks through a long-standing trendline that originated on February 25th, resulting in multiple lower highs. The recovery may encounter immediate resistance at the $15.46 peak (May 7th), followed by $18.43 (April 1st).
Conversely, a reversal from $14, without establishing a bullish trend, could lead to a retest of the downward trendline near $13.50, followed by a support zone at $12.51.
SPX Meme Coin Approaches Key Resistance
SPX6900 (SPX) has maintained weekly gains of 23% so far, trading at $1.11 at the time of writing. SPX’s rally breaks above the $1 psychological resistance. The 50-day and 200-day exponential moving averages (EMAs) suggest a golden cross, a buy signal, as the short-term trend gains momentum.
Based on the Fibonacci retracement extending between January 17th and March 11th from $1.53 to $0.29, the 50% level is at $0.91. As the uptrend scales towards the 78.6% Fibonacci level at $1.26, profit-taking could result in a pullback. A reversal in SPX could retest the 50% Fibonacci level at $0.91.
A break above $1.26 could test the January 17th peak at $1.53.
Tether Gold Rises Amid Uncertainty
Gold, a commodity historically known for appreciating during global market instability, is leading gains in the crypto market in the form of Tether’s gold-backed stablecoin, XAUt. This follows the price of one troy ounce of gold on a 1:1 basis.
Amid tariff uncertainty, XAUt is trading at $3,310 at the time of writing after a 1.36% increase on Thursday. However, the stablecoin forms lower highs on April 22nd, May 7th, and May 25th, creating a local resistance trendline while facing headwinds. The recent increase arises from a long-standing support trendline with lows on April 9th, May 15th, and May 29th.
The converging trendlines form a triangle pattern on the daily chart. XAUt is on the verge of high momentum as price action approaches the triangle’s apex. A bullish breakout could test the April 21st peak at $3,462.
On the other hand, the 50-day EMA near the support trendline at $3,258 is a crucial support. However, a breakdown from the triangle could cause the price of Tether Gold to fall to the May 15th opening price of $3,182.
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