As trade war tensions escalate between the U.S. and its allies, Bitcoin finds itself caught in the crossfire, experiencing heightened volatility and uncertain price action. The world's largest cryptocurrency has been whipsawing between support and resistance levels, briefly dipping below the significant $80,000 mark three times this week. Not exactly comforting for investors hoping for a smooth ride to the moon.

Despite the turbulence, Bitcoin managed to climb back above $84,800, posting a respectable 5% weekly gain. Pretty impressive considering the economic chaos unfolding. Trump's trade tariffs triggered an 8% sell-off initially, but crypto markets have shown remarkable resilience. Who said digital assets can't handle a little political drama?

Despite market turbulence, Bitcoin's 5% weekly gain shows remarkable resilience in the face of Trump's tariffs and economic uncertainty.

Technical indicators paint a mixed picture. The Parabolic SAR sits ominously above the current price—a classic bearish signal. Meanwhile, Bollinger Bands suggest Bitcoin is constrained between $76,505 and $110,676, with the mid-band at $93,591 representing a key threshold for potential bullish momentum.

Break below $75,000 though, and we could be looking at a painful retest of $68K or lower. Not fun.

Bitcoin ETFs aren't helping matters. Thursday saw $143 million in outflows, contributing to a staggering $830 million withdrawn this week alone. March's total? A whopping $1.7 billion walking out the door. These persistent outflows are amplifying Bitcoin's price swings. Go figure.

The broader context isn't exactly sunshine and rainbows either. Canada's retaliatory measures against U.S. tariffs have intensified the trade war narrative, suppressing retail trader risk appetite. Even positive inflation data from U.S. CPI and PPI reports couldn't fully offset these concerns.

On the legislative front, efforts are underway to protect Trump's proposed Bitcoin reserve policy. Representative Byron Donalds is pushing legislation to prevent future administrations from reversing course.

Meanwhile, Texas lawmakers are considering a $250 million Bitcoin reserve of their own. Politicians jumping on the crypto bandwagon—what could possibly go wrong?

The current situation mirrors characteristics of a bear market with increased volatility and negative sentiment, though long-term investors may see buying opportunities at these reduced prices.