Bitcoin Faces 'Death Cross' Amid Trump Tariffs, Analysts See Potential Rebound

Bitcoin, the world's largest cryptocurrency by market capitalization, is currently facing a potential 'death cross' pattern, a technical indicator that often signals a bearish trend. This pattern occurs when a short-term moving average crosses below a long-term moving average, suggesting that the asset's price may continue to decline. However, one analyst believes that this death cross could actually be a bullish sign for Bitcoin.

Ask Aime: What will happen if Bitcoin's "death cross" pattern turns out to be bullish for the crypto market?

Crypto analyst Evan Aldo explained that the death cross might not be as negative as it sounds. It could be a sign that Bitcoin is about to bounce back. Looking at a chart shared by Benjamin cowen, he said that this pattern has historically marked the bottom of the market, meaning Bitcoin could be on the edge of a big recovery. Even with current downward pressure, he believes if Bitcoin’s price dips toward the $77,000-$79,000 area, it should find substantial support there.

A rebound is expected soon, with Bitcoin possibly reaching $119,000 to $120,000 by the summer. By the end of the year, Bitcoin could hit as high as $150,000, fueled by strong market momentum and investor interest. However, a drop below $75,000 would be a red flag. The biggest concern would be if the price falls below $70,000, which would be a huge drop compared to previous market corrections after Bitcoin’s halving events. Historically, Bitcoin has corrected around 30-35% after such events, so anything beyond that could signal deeper trouble.

Markets took a major hit this Thursday after President Donald Trump announced new tariffs, including a 25% levy on auto imports from Canada and potential tariffs on the EU if they collaborate against the U.S. economy. Cryptocurrencies like Bitcoin, Ethereum (ETH), and Ripple (XRP) dropped over 5%. Bitcoin, often seen as a hedge against traditional market risks, wasn’t immune to the sell-off. Experts predict that the tariffs, aimed at boosting the U.S. economy, might actually strain global markets, leading to more volatility in both traditional assets and digital currencies like Bitcoin.