US President Donald Trump has announced a 25% increase in tariffs on Canadian steel and aluminium, bringing the total duty to 50%. The decision has affected currency markets, with the euro strengthening against the US dollar.

The tariff increase has added to concerns over global trade stability. Analysts note that rising US protectionism could lead to inflationary pressures. A weaker dollar often drives demand for alternative assets, including Bitcoin, which some investors see as a hedge against currency instability.

Dollar Weakens, Alternative Investments Gain

Following the announcement, the euro rose 0.7% against the dollar, reaching $1.091. The dollar index, which measures the US currency against others, has fallen to its lowest level since October. Traders are adjusting portfolios, with some shifting investments toward European assets. Market participants expect further volatility as they assess the long-term effects of the new tariffs on trade and economic trends.

BTCUSD Technical Analysis

The BTCUSD H1 chart indicates a downtrend, with the price following a bearish trend line for the past several days. However, today’s price action has shown a bullish reversal so far. The chart formed a double bottom pattern, which triggered a move upward towards higher levels.

The 82000 mark has acted as a key intraday resistance level. After the formation of three consecutive bearish candles, a bullish engulfing candle appeared at the 79650 level, signalling potential buying interest.

Despite this bullish move, the bearish trend line is still in play and may present significant resistance, preventing the upward momentum from continuing easily on the intraday charts. The bulls may face difficulties overcoming this barrier without further consolidation or a breakout above the trend line.