Bitcoin Price Mirrors 2020 Crash as US–China Easing set Recovery

The Bitcoin price has climbed 2.87% in the past 24 hours to $115,063, signaling an early rebound from the recent crash triggered by the US–China tariff shock. Analyst Ted Pillows compared the current correction to March 2020, suggesting such deep drawdowns typically occur before a strong reversal, not at market tops. Meanwhile, the broader market is showing cautious optimism as global equities and crypto recover following easing trade tensions between the two economic giants.

Bitcoin Price Action Reflects Early Reversal Signals

Specifically, analyst Ted Pillows noted that the recent BTC price structure strongly mirrors the March 2020 crash, which preceded a remarkable 1,500% rally from roughly $3,700 to $65,000 in April 2021. 

The latest decline from $122,000 to $107,000 created a sharp wick similar to that Covid-era bottom, reinforcing a bullish long-term Bitcoin price prediction. After rebounding 2.87% to $115,000, Bitcoin has begun forming a potential base that could replicate the historical pattern.

If history repeats itself, a comparable 1,500% surge from current levels could project BTC price toward $1.7 million by November 2026. However, the rally’s sustainability depends on whether Bitcoin closes weekly above $122,000 and maintains higher lows.

Meanwhile, holding the $111,000 level remains critical to avoid extended consolidation. Overall, technical parallels and the market’s quick recovery suggest this correction may have marked the cycle’s bottom before a multi-year uptrend resumes, strengthening the long-term BTC price prediction.

Bitcoin Price Action Bitcoin Price Action
Bitcoin Charts (Source: TradingView)

US–China Trade Easing Revives Market Confidence

Trump’s tariff announcement caused a one-day 12% drop, sending BTC from $122,000 to $107,000. Panic quickly spread across markets, wiping billions from global capitalization. However, both the US and China have shown willingness to resume trade talks. This move has sparked optimism for economic recovery.

Recently, President Trump reassured investors, saying, “Don’t worry about China, it will all be fine.” He praised President Xi as “highly respected” and emphasized that the U.S.A. wants to help China, not hurt it.

Following these remarks, Bitcoin price gained strength and reclaimed the $115,000 level. Traders now view the diplomatic tone as a sign of improving stability and confidence. Continued cooperation could accelerate Bitcoin’s rebound if dialogue progresses in the coming weeks.

Summary 

The market’s reaction to easing trade tensions supports Ted Pillows’ belief that sharp declines often precede reversals. If BTC holds above $115,000, the bottom could already be confirmed. A gradual climb toward $122,000 is expected in the short term. A breakout above this range might trigger a rally similar to 2020. Therefore, the overall outlook for Bitcoin remains cautiously bullish.

Source: https://coingape.com/markets/bitcoin-price-mirrors-march-2020-crash-as-us-china-trade-easing-fuels-recovery/