The crypto markets posted modest gains on Tuesday as the US prepares to levy tariffs on most imported goods on Wednesday which has been coined “Liberation Day”. Bitcoin April futures settled at $85,350, up $2,640 from previous settlement. 
 

Wednesday is Liberation Day, a term coined by President Trump as the day tariffs will be levied on imports and aims to free the United States from the reliance on foreign goods. Analysts are mixed in the results of what this might bring to the equity markets. Some point out the markets have processed the upcoming tariffs, while others are waiting how they affect the consumers. 
 

Bitcoin has been trading bearishly since it’s all-time highs in December and seems less of a hedge against potential inflation than some analysts perceived. Gold, the traditional inflation hedge asset has been making all-time highs, reaching to $3,177 on the June Gold. Bitcoin has been trading more in correlation with the Nasdaq-100. This could be due to the nature of technology involved with bitcoin. It could also be derived from the attitude change on cryptocurrencies since Trump began his second term as president.
 

Since the election, Trump has minted his own “meme” coin, promised to make the US the bitcoin capital of the world, and signed an executive order to create a bitcoin reserve. The concept of bitcoin was to be de-centralized and a cash alternative to clear transactions in a system that relies on trust between institutions. The reserve and the Trump family’s ties to cryptocurrency may be eroding the trust bitcoin has established, but as this is a developing market, only time will tell. 
 

Bitcoins hash rate, the index of its computational power of the network, is just below its all-time highs which indicates the miners are still maintaining their current systems and power usage. This could indicate they are bullish on bitcoin as their energy costs are lower than what they receive as a reward for mining a block.

Bitcoin April futures settled at $85,350, up $2,640 from previous settlement. April Bitcoin opened for Wednesday’s trading at $85,600.
 

Bitcoin is currently trading between the 50- and 200-day simple moving averages which follows a consolidation pattern. A month ago, price action bounced from the 200-day SMA which may indicate a support level that follows the 200-day. The 50-day SMA is currently at 92,090 and the 200-day SMA is at 78,202.
 

The 14-day RSI is at 47.339% and trending upwards. RSI touched the 30% oversold level at the same time as price action touched the 200-day SMA and rebounded. 
 

The Directional Movement Index currently indicates a bearish trend. The ADX is weaking which is in line with the consolidation pattern and appears to be transitioning to neutral. The negative directional index is elevated above the positive directional index which indicates a bearish trend. However, the negative is sloping downwards and the positive upwards, again in line with the consolidation pattern.

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