From Bitcoin China Ban To Global Trade Tensions – Why BTC Is Stronger This Time

Bitcoin is once again at the center of global market turbulence, experiencing wild price swings as volatility hits both crypto and traditional assets. After a week marked by panic selling and fear, BTC surged over 11% following U.S. President Donald Trump’s announcement of a 90-day pause on reciprocal tariffs for all countries except China, which remains targeted with a steep 125% tariff.

This sudden policy shift injected momentum into the market, highlighting Bitcoin’s capacity to respond quickly to macroeconomic developments. CryptoQuant analyst Axel Adler shared his perspective on X, noting that while the 2021 mining ban in China severely damaged network confidence and triggered a 53% price crash, the current trade war scenario paints a different picture. Rather than breaking trust in the protocol, external economic shocks like tariffs seem to showcase Bitcoin’s underlying resilience.

Unlike the mining ban, which disrupted the core infrastructure, today’s macro events reflect economic tensions outside of the blockchain’s fundamentals. As investors seek alternatives amid uncertainty, Bitcoin’s role as a hedge or safe haven asset is back in the spotlight. The question now is whether this momentum can build into a broader recovery—or if new shocks await.

Bitcoin Faces Critical Test As Bulls Attempt Breakout

After weeks of intense selling pressure and uncertainty, Bitcoin is now facing a crucial test that could define the next chapter of the current market cycle. The leading cryptocurrency has reclaimed the $80,000 level, marking the beginning of what could be a recovery phase. However, bulls are now eyeing a decisive move above daily resistance around $88,700—a level that must be broken to confirm a sustained uptrend.

This recent recovery comes amid sharp volatility across financial markets, with price swings not only in crypto but also in global equities. Ongoing trade tensions and the threat of more aggressive US tariffs continue to rattle investor confidence. Despite this, Bitcoin is showing renewed strength.

Top analyst Axel Adler shared the Bitcoin ATH Overview Price Peaks and Drawdowns model, which compares the impact of historical macro shocks. He points out that the 2021 mining ban in China fundamentally undermined trust in Bitcoin’s infrastructure and triggered a 53% collapse. In contrast, the current correction—down 28% from all-time highs—appears to be more of a healthy consolidation.

Adler emphasizes that Bitcoin’s resilience lies not only in its technology but also in the conviction of its holders. In his words, “Bitcoin is truly strong—or more precisely, it’s the holders’ belief in Bitcoin that is strong.”

BTC Price Holds Above $81K As Bulls Gain Momentum

Bitcoin is currently trading above the $81,000 level after a sharp surge that reignited bullish sentiment across the market. This move came amid broader volatility and has brought BTC back into a critical zone where momentum could shift decisively in either direction. While price action remains uncertain, holding above $80K is seen as a constructive signal by traders and analysts alike.

Bulls are now eyeing the next major resistance zone between $85,000 and $87,000, where both the 200-day simple moving average (SMA) and exponential moving average (EMA) sit. Reclaiming this range is essential to confirm bullish strength and push toward the $88,000 mark. If BTC can break above $88K with conviction, a test of the $90K level could quickly follow.

However, if bulls fail to reclaim these moving averages or sustain upward pressure, Bitcoin could fall back into a period of sideways consolidation—or even risk renewed selling pressure. Traders will be watching closely for signs of strength or weakness around these technical levels as macro uncertainty continues to weigh on global markets. For now, $80K remains the key level to hold, while $88K is the level to break.

Featured image from Dall-E, chart from TradingView