Fed easing may trigger BTCUSD recovery

The BTCUSD exchange rate started April 8th on an upward trajectory, opening at 78956.52. The gains came amid uncertainty over import tariffs imposed by Donald Trump, which fueled global trade tensions and triggered a sell-off in risk assets.

After sliding to 74,562.61 earlier in the week amid heightened market volatility and economic uncertainty, Bitcoin has demonstrated relative resilience. The flagship cryptocurrency has notably outperformed peers like Ethereum, which plunged nearly 11.8% over the week.

Current price levels appear attractive for buying. While positive funding rates reflect bullish sentiment, declining open interest and rising put options suggest traders remain cautious. Historical patterns also indicate that corrective phases are often followed by rallies once macroeconomic uncertainty subsides.

Further market direction will ultimately be determined by the Fed’s rate decisions and global reactions to US policy moves. Potential retaliatory measures from the EU and China may intensify trade barriers, exacerbating global economic uncertainty and potentially triggering a broader pullback in risk assets, including cryptocurrencies.

If the Fed ends up cutting rates, it could weaken the dollar and give crypto a lift. Lower rates also tend to drive inflation, making Bitcoin more appealing as a hedge. But if they stay hawkish, risk assets could come under even more pressure.

As of April 8th, the MACD remains in negative territory, with the gap between the main and signal lines widening in recent days, suggesting strong bearish momentum emerging on Monday. However, the Stochastic Oscillator hints at a potential trend reversal or bullish momentum.

Current recommendation: 

Buy at the current price in the absence of retaliatory measures from US trading partners. Take profit – 85,500. Stop loss – 75,000.