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Bitcoin has been able to extend the upwards momentum it has incurred over the past several days and is now nearing the key resistance level of $11,000, which was the price at which BTC faced a swift rejection that sent the crypto reeling down to lows of $9,100.
Now, some are theorizing that the United States’ latest set of tariffs on China may have sparked this BTC rally, as most “safe haven assets” are currently surging.
Bitcoin Climbs Towards $11,000 as Bears and Bulls Battle
At the time of writing, Bitcoin is trading up nearly 2% at its current price of $10,770, which is up significantly from its daily lows of $10,400.
This price surge today marks an extension of the upwards momentum that Bitcoin first incurred last weekend when its price sharply dipped to $9,100 before quickly recovering and starting an uptrend that has sent the crypto back to its current price levels.
Importantly, a couple of weeks ago BTC sharply rose to highs of $11,000 before facing a significant sell-off that sparked a week-long downtrend. It remains unclear as to whether or not this price level will once again have insurmountable selling pressure.
Josh Rager, a popular cryptocurrency analyst, spoke about Bitcoin’s near-term resistance in a recent tweet, explaining that $10,800 is a short-term resistance level.
“$BTC Weekly Chart: Currently, Bitcoin price is testing the resistance level $10,833: Price must not only break but want to see the price above on the weekly close in less than 48 hours. Support needs to hold above previous resistance at $10,590. Close above $10,833 is bullish,” he said.
https://twitter.com/Josh_Rager/status/1157497316141654016
Did U.S. Tariffs Spark the Recent Rally?
This past week it was announced that the US will be placing additional tariffs on Chinese imports, which instantly led to a sell off in the global equity markets.
Importantly, many safe haven assets have surged in the time since these tariffs were announced, which may strengthen the Bitcoin “Gold 2.0” narrative.
“$BTC has rallied together with multiple safe-haven assets after Trump’s latest tariff storm. Will the trade war continue to be a catalyst for #Bitcoin’s price growth?” Binance Research explained in a recent tweet while referencing the below graph.
$BTC has rallied 📈 together with multiple safe-haven assets after Trump's latest tariff storm.
Will the trade war continue to be a catalyst for #Bitcoin's price growth? 🤔 pic.twitter.com/Ghf0eqvazF
— Binance Research (@BinanceResearch) August 2, 2019
As the global economy continues to face instability, it is likely that analysts will gain better insight into whether or not this instability will prove to be a positive thing for BTC.
Featured image from Shutterstock.
