Bitcoin Plunge! Is Now the Time to Buy? Smart Investment Strategies Amid Trump’s Tariff Turmoil

Bitcoin Daily Chart

Today, Bitcoin (BTC) plummeted to the $91,000 range as President Trump announced tariffs on Canada, Mexico, and China, triggering a risk-averse sentiment across markets. Bitcoin fell by 10%, with other cryptocurrencies like Ethereum (ETH) seeing a 22.7% drop. Even the meme coin “$TRUMP,” launched by Trump himself, fell over 15%. Meanwhile, the U.S. dollar strengthened as investors shifted their focus to safe-haven assets, leaving the crypto market in a challenging position.

Future Outlook and Predictions

1. Bitcoin Daily Chart Analysis
   The attached Bitcoin daily chart shows a sustained long-term uptrend, but recent price movements indicate a significant correction phase. The drop to around $91,000 tests a critical psychological support level. The green moving average line could act as a support, or the price may drop further, depending on market sentiment.
2. Impact of Trump’s Tariffs
   Trump’s tariff policies have heightened concerns of a global trade war, putting immense pressure on risk assets like cryptocurrencies. This announcement has dampened market sentiment and may lead to further short-term downside for cryptocurrencies.
3. Dollar Strength and Risk Aversion
   With the U.S. dollar gaining strength as a safe-haven asset, Bitcoin’s role as “digital gold” is being challenged. This may result in funds temporarily shifting to other asset classes.
4. Psychological Support Levels and Market Reaction
   The $91,000 level acts as a key psychological support. If breached, further declines to around $85,000 could be expected. However, policy responses from the U.S. and other nations may stabilize markets and lead to a recovery.

Explanation for Beginners

The Bitcoin market is experiencing significant movements, but this could be a great opportunity for beginners to make the most of it with the right actions! Follow these steps to start investing confidently.

✅ Specific Action Plan

1. Start with Small, Gradual Purchases
   With prices near a psychological support level, consider starting with small investments using the “dollar-cost averaging” method. This allows you to minimize losses if prices drop further while positioning yourself for gains if prices rebound.
2. Try Short-Term Trading
   In this high-volatility market, short-term trades can be profitable. Specifically, buy near the support level and sell near the recent resistance level for potential quick returns.
3. Check News and Charts Daily
   The market is highly reactive to announcements from President Trump and related policies. Keep yourself updated on relevant news and track price charts regularly to make informed decisions.
4. Diversify Your Investments
   Avoid concentrating solely on Bitcoin. Spread your investments across other cryptocurrencies or traditional assets like the U.S. dollar or gold to reduce risk.

Now is the perfect time to learn and take action. Start small, stay consistent, and aim for steady growth!