Bitcoin Drops 5% to $78,300 as US-China Trade War Intensifies
1min read Bitcoin (BTC) price experienced a rapid decline to $78,300 at the April 9 market open as the volatile behavior in equities markets continued to unsettle risk-asset traders. The price of BTC/USD fluctuated, retargeting five-month lows under $75,000 before rebounding leading into the New York trading session. The deepening US-China trade war kept stocks on edge, having cost Bitcoin the $80,000 mark the day prior. Unusual market behavior accompanied US tariff announcements, and China’s response with reciprocal tariffs saw the S&P 500 experience significant volatility, with large intraday reversals.
Market volatility was particularly sensitive to statements from US President Donald Trump, leading to "herd-like" price action where large daily gains turned into large daily losses, and vice-versa. This volatility extended to the cryptocurrency market, with the Crypto Fear & Greed Index dropping to its lowest levels since early March. For Keith Alan, co-founder of trading resource Material Indicators, the market conditions were unlikely to improve in the short term, making it difficult to predict the next move for Bitcoin.
Analyst rekt capital highlighted a new resistance level for Bitcoin price action, identifying a recent "gap" in CME Group’s Bitcoin futures between $82,000 and $85,000. This gap, now a resistance level, was confirmed by a bearish retest. Further analysis suggested a new BTC price range with $71,000 as its lower boundary based on previous trading volumes. Bitcoin was experiencing downside continuation after upside wicking into the early March Weekly lows, confirming this red level as new resistance. BTC is now dropping into the $71,000-$83,000 Volume Gap to fill this market inefficiency.
According to the analyst's forecast, Rekt Capital is among those seeing a potential long-term reversal point at $70,000 or marginally lower. This analysis underscores the potential risk for Bitcoin to reach a new five-month low near $71,000 if the tariff war and stock market tumult continue. The volatile market conditions and the sensitivity to geopolitical events make it challenging to predict the next move for Bitcoin, but the current trends suggest a cautious approach for risk-asset traders.
Ask Aime: What caused the sharp decline in Bitcoin's price to $78,300?
