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Tariffs & Crypto: Will Bitcoin Crash or Breakout? BTC, ETH, XRP Analysis Amidst Economic Shifts

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The global economic landscape is always in motion, influenced by policies, political events, and investor sentiment. One such force currently shaping market behavior is the growing fear around tariffs. When news of new tariffs or economic restrictions circulates, investors often anticipate the worst. Sharp corrections in stocks and cryptocurrencies are seen as inevitable by many. However, history and market psychology tell a different story: when news is already known and widely expected, its impact is frequently priced in well before the actual event occurs.

This idea of “pricing in” reflects a basic principle in financial markets. When investors know a certain event is coming—like the enactment of a new set of tariffs—they begin adjusting their portfolios ahead of time. As a result, prices move in advance of the event itself. By the time the news becomes official, the market may no longer react violently. In fact, in many cases, it may even rebound if the reality turns out to be less severe than the rumors that preceded it.

The crypto markets are no different. As tariffs took center stage in economic discussions over recent weeks, Bitcoin and other leading cryptocurrencies experienced heightened volatility. But as we assess where the market truly stands, it’s critical to ask: has the worst already been priced in?

Bitcoin’s Current Path Through Elliott Wave Theory

One of the most powerful tools in the world of technical analysis is Elliott Wave Theory, a method that maps market cycles through waves of investor psychology. According to the theory, markets move in a series of five upward impulsive waves followed by three corrective waves—A, B, and C.

Currently, Bitcoin appears to be in the B-wave of a larger corrective phase. In simpler terms, after falling during an A-wave, the price is now experiencing a relief rally, which may reach somewhere between $93,000 and $96,000. This zone is particularly important because it aligns with key Fibonacci retracement levels—the 0.5 and the golden 0.618.

These levels represent common reversal points in financial markets, and they often act as invisible barriers that prices struggle to break through. Should Bitcoin fail to move decisively above this resistance zone, a C-wave correction could follow. This would represent the final leg down in the correction, potentially taking BTC to the $54,000–$62,000 range.

It’s important to remember that if Bitcoin were to break above its all-time high during this supposed B-wave, it would invalidate the wave structure. That would signal not a correction, but the continuation of a new impulsive rally. This makes the upcoming weeks especially crucial for long-term investors and swing traders alike.

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A Broader Look at Bitcoin’s Macro Trend

Stepping back from the daily chart and zooming out to Bitcoin’s multi-year trajectory reveals even more context. The previous market cycle seems to have completed a full five-wave advance, peaking at the last all-time high. If Elliott Wave theory holds, Bitcoin should now be in the midst of a longer-term correction—one that could take months to fully develop.

This extended corrective phase doesn’t necessarily mean doom and gloom. Corrections are healthy, natural, and often essential for building a foundation for the next major move up. They cleanse excess speculation from the market, shake out weak hands, and allow more institutional capital to enter at more reasonable valuations.

Interestingly, while Bitcoin may be in this cooling-off period, many altcoins are still in earlier stages of their impulsive wave cycles. This opens up the possibility for strong gains in select altcoins even as Bitcoin consolidates. Ethereum and XRP are two such coins showing promising signals.

Ethereum’s Reversal Setup and Institutional Backing

Ethereum has always been more than just a cryptocurrency. As the backbone of decentralized finance (DeFi) and NFTs, its network usage and demand metrics often diverge from Bitcoin’s. Recently, Ethereum’s price action has shown signs of a potential reversal.

One of the most compelling indicators is the bullish divergence on the RSI (Relative Strength Index). This occurs when the price makes lower lows, but the RSI makes higher lows—an early sign that bearish momentum is weakening. Currently, Ethereum is hovering near the 0.786 Fibonacci retracement level, around $1,720. This deep retracement often marks turning points in major crypto corrections.

What’s more, a break above $2,230—the 0.618 retracement, also known as the “golden level”—would confirm a new uptrend is underway. Adding fuel to this technical fire is recent news that investment giant Fidelity has increased its Ethereum holdings. Such institutional moves often signal confidence in the asset’s long-term trajectory and can serve as confirmation of what charts already suggest.

If you’re new to crypto investing, it’s a great time to create a free wallet with Volet and start exploring opportunities. Don’t forget—you can also claim free Bitcoin at Freebitcoin as part of your crypto journey.

XRP and the Power of the Third Wave

XRP is another cryptocurrency with a particularly bullish setup. Unlike Bitcoin and Ethereum, XRP’s price movements often follow unique patterns due to its close ties with institutional payment networks and ongoing regulatory battles. But from a technical standpoint, XRP may be entering one of the most powerful market phases: Wave 3 of the Elliott Wave cycle.

Wave 3 is typically the longest and strongest wave in the five-wave sequence. It often emerges after an initial rally (Wave 1) and a brief correction (Wave 2). If XRP is indeed starting Wave 3, we could be looking at explosive gains ahead—especially if the token manages to break its all-time high of $3.80.

XRP remains bullish as long as it stays above key support levels in the $1.70 to $1.90 range. These support zones act as the base for the next move higher. Technical traders will be watching closely for volume confirmation and RSI breakouts, which could validate the start of a strong trend.

Fibonacci Time Zones and XRP’s Window of Opportunity

While most traders are familiar with Fibonacci price levels, fewer are aware of Fibonacci time zones—a tool that applies the same numerical sequence to time instead of price. According to this method, XRP entered Fibonacci Time Zone 3 in early April. This suggests that a bullish move is not only probable but also likely to unfold within a specific window, which is projected to culminate around April 25.

This adds another dimension to XRP’s setup. With both price and time indicators pointing toward bullish movement, XRP becomes one of the most technically compelling assets on the crypto radar.

Traders and long-term holders alike should pay attention. Whether you’re using charts or gut instinct, it’s essential to act with a solid strategy. And if you’re just getting started, remember: you can claim free Bitcoin at Freebitcoin and manage it securely with a Volet crypto wallet.

Navigating Volatility with Technical Analysis

Volatility is part and parcel of crypto investing. The daily swings can be dramatic, but amid the noise, patterns often emerge. That’s where technical analysis comes in. Unlike reactionary trading based on news headlines, technical analysis uses data—price, volume, momentum, and time cycles—to predict market direction.

In times like these, when global macroeconomic factors such as tariffs or interest rate decisions shake markets, technical indicators offer a grounded perspective. RSI, Fibonacci retracements, Elliott Wave counts, and volume analysis can all help traders avoid emotional decisions.

More importantly, these tools provide entry and exit points that help preserve capital. For example, a trader spotting a bullish RSI divergence can time their entry near the bottom, while a Fibonacci retracement zone can warn of impending resistance. Combining these signals increases accuracy and helps mitigate risk.

If you’re new to this approach, many educational platforms offer tutorials and charting tools. As you build your strategy, you can practice with free Bitcoin from Freebitcoin and use Volet to manage your assets safely.

Psychological Warfare: Handling Fear, Greed, and Hype

Behind every market chart is human psychology—waves of fear, greed, euphoria, and despair. Media headlines often fan these emotions, especially when dealing with complex subjects like tariffs or regulatory crackdowns. This creates a fertile ground for irrational decisions.

However, successful investors learn to detach from the emotional noise. They view red candles as opportunities and green candles as cautionary flags. They understand that markets move in cycles, and the strongest gains often come to those who act when others are afraid.

Learning to manage your psychology is as important as mastering charts. Tools like dollar-cost averaging (DCA), stop-loss orders, and risk management strategies can all help navigate emotional waters. But even more crucial is understanding that long-term success in crypto comes not from luck, but from discipline, patience, and education.

A New Era for Crypto Awaits

The crypto market stands at a pivotal moment. Tariff fears have triggered short-term uncertainty, but the broader picture remains hopeful for informed investors. Bitcoin’s technical setup points to a potential rally followed by one last dip. Ethereum’s divergence signals a reversal, backed by institutional confidence. XRP’s structure suggests it may be entering its most powerful wave yet, amplified by Fibonacci time convergence.

In these conditions, knowledge truly is power. By using technical analysis, staying emotionally grounded, and leveraging market cycles, investors can turn volatility into opportunity.

If you haven’t yet taken the plunge into crypto, there’s never been a better time to start. Claim free Bitcoin today at Freebitcoin, and protect your assets with a secure wallet from Volet. The next breakout—or correction—may be just around the corner. The question is: will you be ready?

From:
Date: April 2, 2025
People: Fidelity
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