President Donald Trump’s newly announced import tariffs have led to significant volatility in financial markets. According to Matrixport, the recent focus on technology-driven developments like DeepSeek may have downplayed the impact of Trump’s policies, but the situation is changing swiftly. In the cryptocurrency market, individual investors aiming to capitalize on price drops are adopting a cautious approach, which increases uncertainty. Matrixport analysts emphasize the critical importance of tracking Bitcoin’s 21-week moving average, a historically reliable tool for predicting overall market trends.
Market Reactions and Consumer Behavior
Trump’s increased tariffs on China have triggered concerns about a resurgence in global trade wars. Market participants are exercising caution regarding potential additional measures to be announced in the coming days. Matrixport has noted that individual investors are skeptical about adopting a “buy the dip” strategy following recent declines in the cryptocurrency market, raising concerns about potential liquidity tightening.

Matrixport has observed that long-term investors are closely monitoring Bitcoin’s resistance levels in technical indicators. Specifically, the 21-week moving average clarifies whether the overall trend is maintained despite short-term volatility. Analysts indicate that if there is a sustained break below this level, risk management strategies will need to be implemented.
Bitcoin and Critical Indicators
The 21-week moving average of Bitcoin has been regarded as the strongest bullish signal over the past three years. Maintaining the price above this level suggests that the upward trend continues. However, recent selling pressure has tested this indicator, particularly as institutional investors adjust their portfolios, increasing short-term pressure.
Technical analysis experts indicate that if Bitcoin remains below the $60,000 level, the 21-week average could turn into critical support. Historical data shows that severe drops below this level can lead to a broad market correction. Therefore, in the upcoming weeks, the primary signal to watch will be whether this moving average is maintained.