After dropping nearly 4% going into the weekend on the news that President Trump had levied a 50% trade tariff on the EU, Bitcoin is recovering after Trump agreed on Sunday to extend the tariffs deadline until 9 June. Will Bitcoin now surge into the next stage of the bull market, or is there more consolidation to come?
Bitcoin resilient during tariff shocks
It might be argued that Bitcoin was due for an upward phase anyway. The price had dropped nearly 4% on Friday, wiping off around $4,400 from the price. After such a fall, and with Bitcoin’s short-term momentum indicators having reset, it was only a matter of time before the king of the cryptocurrencies started to climb once more.
While the tariffs news is succeeding in shocking the market from time to time, these tremors are becoming more short-lived as the market has generally priced in the worst and has become more resilient. The next big quake could come if the talks between the EU and the US are not productive enough to avoid the 50% tariffs being imposed, but with both sides laser-focussed on preventing this, in order to stave off negative consequences for all, some kind of deal would perhaps be more likely than not.
$BTC on path to next all-time high
Source: TradingView
The short-term chart for $BTC shows that the price dipped back into the ascending channel, but that the support at $106,000 was firm enough to hold the price up. A strong bounce from here has brought the price back above the previous all-time high. Perhaps this can definitively hold as support this time.
A positive occurrence for the $BTC price is that a W pattern formed in between the two horizontal support lines at $106,000 up to $109,000. This has just broken out and has been confirmed. Should the pattern continue to its full measured move, this would take the price just beyond the all-time high.
The Stochastic RSI on the 4-hour time frame has the indicators reaching the top, but the 8-hour, 12-hour, and the daily time frames are only just beginning to rise from the bottom, signalling that upside price momentum is still happening.
$BTC consolidates above $106,000 horizontal price structure step
Source: TradingView
The 6-day time frame provides some clues as to what is coming next from Bitcoin. While many traders and analysts across social media are suggesting that a large dip in price may be incoming for Bitcoin, the chart above is signalling that there may be another strong upward surge first.
The horizontal orange lines on the chart are showing the base and the topside of very strong market structure. The lower horizontal line at $74,000 delineates the top of the 8-month bull flag, and the bottom of the last bull flag. Now, a price structure step is forming along the top of the recent bull flag. If this can hold, it could become the base for the next stage of this bull market.
The MACD indicator at the bottom of the chart supports this thesis. The green histogram bars are continuing to get bigger, and the MACD and signal lines have a good way to travel to equal the two previous tops in mid-2024 and at the beginning of 2025.
The Stochastic RSI needs to maintain its indicators at the top of their trajectory for an extended period of time. This said, once they do start to cross down, this could signal the end of this particular surge.
Looking further ahead, once the reversal does come, it may well bring the price back down to retest $106,000. This would only make this level even stronger, and a final new all-time high could be made on one more potential surge following this.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2025/05/bitcoin-btc-surges-amid-eu-tariff-relief-market-analysis