Geopolitics and inflation put a break on Bitcoin

Just as US President Donald Trump meets his Chinese counterpart Xi Jinping in Beijing and the Pentagon considers ramping up pressure on Iran, geopolitics is once again taking the upper hand and puts pressure stock and crypto markets; investors are taking some profits off the table and so Bitcoin is struggling to climb higher.

At the time of writing, Bitcoin is trading at $79,200.

Inflation

Donald Trump is consulting with his national security team on how to ramp up pressure on Iran again, and Wall Street is worried about rising inflation.

All of this is causing Bitcoin investors to take some profits, and the defense of $76,000 (a major support line) has suddenly become more important than reaching $85,000, the next target for the largest digital currency.

Bitcoin has been trading just below the 200-day moving average for two weeks now and needs to cross that technical line to turn the current downward trend into a genuine recovery (and the closure of ‘crypto winter’).

A daily close above the $82,000 level would be a good sign, giving us hope for a further rise towards $85,000.

At this moment, that does not seem immediately possible, although a tweet from Donald Trump regarding a reduction in trade tariffs between China and the United States for example, could of course make that happen.