Bitcoin Stabilizes Near $85K Amid Tariff Tensions, Breakout Eyes $88K Target

Bitcoin found stability on Monday after weeks of volatility as investor risk appetite improved.

This followed the US decision to temporarily exempt certain Chinese electronic imports from its tariff regime. While that’s near term relief, uncertainty still hangs over speculative assets like crypto.

Bitcoin (BTC/USD) is now at $84,874 after recovering from lows of $74,000. Unlike previous bounces, this one is supported by improving technicals and momentum. The market is still cautious though as Trump hinted at new tariffs on semiconductors – an industry critical to crypto mining infrastructure.

Trade War Impact on Crypto Sentiment

The trade war between the US and China has escalated further. Tariffs on Chinese imports are at 145% and China is retaliating with 125% tariffs. Aggressive policy actions are roiling global markets.

Crypto assets which underperform in high-macro-risk environments are vulnerable. Historical patterns show investors moving capital into gold and the Japanese yen during trade instability and Bitcoin struggling to hold rallies.

Key market headwinds:

• US recession fears and cautious consumer data

• Semiconductor volatility, mining token confidence weakening

• Safe-haven flows, gold and yen performing well

Technical Analysis: Breakout Setup Above $86K

Bitcoin is showing bullish momentum again, above the 50 EMA ($83,333) and 200 EMA ($82,722). The ascending trendline is providing support at $83,518. The level to watch is $86,103 – a breakout here could take us to $87,313 and $88,770 in the near term.

Trade Setup

• Entry: Buy above $86,150 on breakout

• Target: $87,300 – $88,770

• Stop Loss: $83,200

This is a trend continuation trade. Buyers should wait for a clean move above $86K with volume before entering.

Institutional Watch: Saylor Signals More Accumulation

Michael Saylor, Chairman of Strategy (NASDAQ:MSTR) recently tweeted cryptic messages hinting at buying Bitcoin. The firm – already the largest public BTC holder – bought 80,715 Bitcoins in Q1 2025 despite reporting an unrealized loss of $5.9 billion.Saylor’s X activity precedes big buys so his signals matter.

Quick Hits

• Bitcoin at $85K, looking to break above $86K

• US-China trade war gets worse: 145% tariffs vs 125% retaliation

• MSTR buying BTC despite $5.9B unrealized loss