Crypto Bounces Back – Time To Buy The Dip If Bitcoin Price Pumps Above $80k?

7 hours ago 16

The crypto market — in correlation with US equities — is seeing extreme volatility following the US market open on Monday.

After trading as low as $74,500 earlier today, the Bitcoin price climbed to $81,200 in a matter of minutes after news broke that US President Donald Trump is considering a 90-day pause on tariffs on all countries except China.

While the rumours turned out to be fake, BTC has continued to trade in the $78k – $79k range, above key support levels.

Reports of ongoing trade negotiations, emergency rate cuts from the Federal Reserve and soaring global liquidity suggest that it could be time to buy the dip.

Why Is The Bitcoin Price Pumping?

Major US indices are trading like meme coins. A fake news citing White House Economic Advisor Kevin Hassett claimed that President Trump was considering a 90-day pause on tariffs on all countries, except China.

However, the White House later reported that the rumours were fake. Instead, the President has doubled down, threatening China with an additional 50% tariff if it didn’t withdraw the 34% hike it imposed on the US last week.

As a result, the S&P 500 has dropped 4.7%, surged 8.4%, plunged 5.45%, rebounded 3.1%, and slipped another 1.5%—all within the first two hours of trading.

However, Bitcoin has once again impressed investors with its resilience and relative stability. BTC rallied by nearly 9% from its lows to breach the $81k mark and has since continued to trade in the $78k – $79k range.

More importantly, it continues to hold above the 50-week simple and exponential moving averages — marked by pink and yellow — in the price chart below. BTC has traded above these levels since March 2023 and a successful close above them would indicate that the bull market isn’t over.

Time To Buy The Dip?

While the tariff pause delay news may have turned out to be fake, financial markets have plenty of reason to show strength. Hassett did reveal that nearly 50 nations have reached out to the Trump administration to negotiate a trade deal and mutually reduce tariffs.

The European Union, India and Vietnam are all currently in talks with the US.

Moreover, there is growing speculation that the US Federal Reserve could respond to the market crash with an emergency rate cut. A closed-door meeting of the central bank’s Board of Governors today has further fueled the rumours.

Moreover, the soaring global liquidity — as highlighted by the rapidly growing Global M2 money supply — indicates that the bottom is near. The crypto market could start to see a bullish reversal by mid-April, which means that now could be the time to buy the dip.

Best Cryptos To Buy The Dip

Sidelined investors should still allocate a sizable portion of their portfolio to Bitcoin. Prominent analysts suggest that Bitcoin Dominance is headed to 66% in the coming months and that the Bitcoin price could peak at $150k in 2025.

However, Ethereum has also reached a key multi-year support level. With trade deals and emergency rate cuts potentially coming down the pipeline, the risk-reward analysis favours going long on ETH at its current price point.

Sidelined investors should also keep an eye out on XRP. Ripple’s close relationship with the Trump administration could make it one of the best cryptos to buy now. It is approaching a key support level at $1.65, which could present an excellent buying opportunity for investors.

Fartcoin is another attractive investment, considering it is one of the few crypto assets that continue to defy the broader market uncertainty with another 11% rally today.

Meanwhile, new crypto assets are in high demand as well. For instance, investors are buying Solaxy (SOLX) in its presale, shielding themselves from the broader market uncertainty.

Behind the strong whale and retail demand, SOLX has already raised nearly $30 million in its ICO.

Being one of the prominent Solana layer-2 coins, Solaxy is likely still undervalued in its presale. After all, it aims to tackle the network congestion that Solana faces during periods of extreme traffic, making it one of the integral components of the SOL ecosystem.