$90K Breakout Ahead as BTC Decouples from US stocks after Chinas Tariffs

Drawing insights from the CoinMarketCap chart above, BTC price briefly dipped to $81,600 before rebounding above the $84,100 mark, at press time.

While BTC‘s price action remains under pressure, BTC appears to be attracting more inflows, as investor look diversify from potential impact of China’s tariffs on US firms revenues.

Bitcoins divergence from U.S. stocks signals decoupling trend

Despite the negative sentiment surrounding the escalating trade war, Bitcoin has maintained its footing above $82,000 throughout the week. This stability contrasts with the S&P 500, which has recorded a 6% decline over the same period, closing at lower levels each day.

S&P 500 plunges and Chinas tariffs tanks US stocks || Source: Nasdaq

The divergence between Bitcoin and traditional equities suggests a potential shift in investor behavior. As U.S. stock markets falter under the bearish overhang of the ongoing trade war, Bitcoins relative resilience could position it as a safer store of value.

If Bitcoin price can form a steady support base around the $81,000 level, it could beging attracting hedge demand from investors looking to mitigate exposure to stock market volatility.

Bitcoin price forecast: $85K breakout ahead of $81,000 support holds

As Chinas retaliatory measures introduces fresh volatility, Bitcoin price forecast signals now indicate potential for a breakout above $85,000. However, this breakout remains contingent on BTC maintaining critical support at $81,000.

The daily Bollinger Bands indicate a tightening range, with BTC currently trading near $84,009.24. The lower band at $80,927.39 reinforces strong demand at this level, while the upper band at $88,104.90 signals a possible bullish breakout if momentum strengthens.

Bitcoin price forecast

The Nasdaq 100‘s weakness further supports Bitcoin’s resilience. With major tech stocks like Apple and Cadence Design Systems (CDNS) posting losses, BTCs ability to hold firm above $82,000 suggests it could be decoupling from U.S. equities.

As investors look to avoid the impact of Chinas tarrifs on US firms, many investors could lean into BTC to mitigate the downside risks, potentially driving up Bitcoin prices towards $85,000.

The Relative Strength Index (RSI) stands at 47.22, reflecting neutral sentiment but trending slightly upward. A move above 50 would confirm renewed bullish momentum. Meanwhile, trading volume remains moderate at 30,140 BTC, suggesting accumulation rather than aggressive selling. If buying pressure intensifies, BTC could challenge resistance at $85,000, with a decisive break opening the door toward $88,000.

Conversely, a failure to sustain $81,000 could trigger $793 million in liquidations, amplifying downward pressure. However, given Bitcoins historical strength at this level, buyers remain well-positioned to defend it.