Stabilizes at $84,400 as China Electronics Receive Tariff Exemptions

Tech

Stabilizes at $84,400 as China Electronics Receive Tariff Exemptions

• Bitcoin is currently trading around $84,400, remaining below the psychological resistance level of $85,000
• Long-term Bitcoin holders are experiencing a 2-year low in profits according to the MVRV Long/Short Difference indicator
• Electronic imports from China will be temporarily exempt from Trumps tariffs, providing some market relief
• Long-term holders have sold over 6,596 BTC (worth over $550 million) in the past two weeks
• Michael Saylor of Strategy has hinted at potential additional Bitcoin purchases despite the companys $5.9 billion unrealized loss

Bitcoin‘s price is holding steady around $84,400 on Monday as markets react to partial trade tariff relief between the US and China. The world’s largest cryptocurrency has struggled to break past the $85,000 resistance level for nearly two months, creating pressure for long-term investors.

Recent market data shows Bitcoin recovered from lows of $74,000 but remains trapped under key resistance levels. This comes as the cryptocurrency market navigates through economic uncertainty and changing investor sentiment.

Tariff Exemptions Provide Limited Relief

The White House announced that electronic imports from China will be exempt from President Trump‘s reciprocal tariffs. This exemption covers a large portion of China’s trade surplus with the US and has helped ease immediate concerns about economic impact.

However, President Trump clarified on Sunday that these exemptions are only temporary. He stated plans to announce separate tariffs specifically targeting electronics and semiconductors in the future.

The ongoing trade tensions have escalated dramatically, with Trump raising cumulative tariffs on China to 145%. Beijing has responded with retaliatory tariffs of 125%.

These trade tensions have contributed to Bitcoins price volatility. Cryptocurrencies, as speculative assets, typically underperform during periods of economic uncertainty.

Traders remain cautious as recession fears grow in the US market. This economic outlook continues to dampen risk appetite for assets like Bitcoin.

Long-term Holders Face Profit Squeeze

Bitcoin‘s prolonged struggle below $85,000 has placed increasing pressure on long-term holders. The MVRV Long/Short Difference indicator has hit a two-year low, revealing that long-term holders’ profits have fallen to their lowest level since March 2023.

This metric suggests a shift in market dynamics, with short-term holders beginning to dominate as they capitalize on price fluctuations. Meanwhile, long-term investors appear to be holding off on new purchases as their unrealized gains diminish.

Data shows that long-term holders have sold more than 6,596 BTC over the past two weeks. This represents over $550 million in value.

While this amount might not be enormous in the context of the entire market, it signals a psychological shift from confidence to caution among dedicated Bitcoin investors. This changing sentiment could potentially delay Bitcoins recovery.

Technical Outlook and Price Analysis

Bitcoin is currently trading at $84,421, hovering just above the crucial support level of $82,619. If Bitcoin falls below this support, the next major psychological level to watch would be $80,000.

Bitcoin Price on CoinGecko

Should the bearish trend continue, $78,841 emerges as another critical support level. Losing this would confirm a deeper market weakness and potentially signal further declines.

On the upside, if Bitcoin manages to break and hold above $85,000, it could trigger a recovery toward $86,848. A sustained rise above $85,000 would invalidate the current bearish trend and potentially open a path toward $89,800.

Technical indicators currently show bearish signals in Bitcoins overall momentum. This aligns with the cautious stance being taken by long-term investors.

The cryptocurrency market as a whole has experienced wild swings in recent weeks as global trade tensions escalated. This volatility has affected most digital assets beyond just Bitcoin.

Other cryptocurrencies are showing mixed performance. Ethereum rose 0.4% to $1,622.57, while XRP fell 0.4% to $2.13. Solana showed stronger performance with a 2.7% increase, while Cardano and Polygon declined by 0.6% and 3.2% respectively.

Michael Saylor, who chairs Strategy, the largest corporate Bitcoin holder, has hinted that the company may purchase more Bitcoin despite recent price declines. This comes just days after Strategy disclosed a $5.9 billion unrealized loss on its digital asset holdings.

Strategy had already purchased 80,715 Bitcoins through the first quarter of 2025, showing continued institutional interest despite market pressures.

The coming weeks will be critical for Bitcoin as investors watch for signs of either continued stagnation or potential recovery above key resistance levels.