Bitcoin Price Surges 1% to $83,792 Amid Global Trade Tensions

Bitcoin (BTC) has shown remarkable resilience in recent days, even as global stock markets faced significant turbulence due to escalating trade tensions. On Friday, retaliatory tariffs from China further weakened major stock indexes, including the S&P 500, the Dow Jones Industrial Average, and the Nasdaq composite. Despite this broader market downturn, Bitcoin's price flirted with $84,000, with its 24-hour average trading volume surging over 22 percent to approximately $42 billion on Saturday during the mid-London session.

The ongoing global trade war is anticipated to disrupt international supply chains significantly. JPMorgan Chase & Co. has forecasted that the U.S. economy could enter a recession this year. Michael Feroli, chief U.S. economist at JPMorgan, noted, “We now expect real GDP to contract under the weight of the tariffs, and for the full year we now look for real GDP growth of -0.3 percent, down from 1.3 percent previously.”

Bitcoin has emerged as a hedge against macroeconomic uncertainties, with gold being exempted from the ongoing tariffs. Consequently, long-term investors, often referred to as "whales," have accelerated their BTC accumulation in anticipation of a bullish breakout. According to on-chain data analysis, the volume of large transactions has increased by $136 billion in the past seven days. Meanwhile, the overall supply of BTC on centralized exchanges has declined from 2.22 million on March 18 to around 2.19 million on April 5.

From a technical analysis perspective, Bitcoin's price has approached the apex of a multi-week correction and consolidation. Veteran financial trader Matthew Dixon predicts that the BTC price is on the verge of a major capitulation towards $70,000. However, the BTC price has established a robust support level of around $80,500, which could form the basis for the next rally towards $85,500 and $92,000 soon.

On April 5th, 2025, Bitcoin's price showed resilience despite broader market caution, trading at approximately $83,792, marking a slight increase of over 1% in the past 24 hours. This upward movement occurred amidst a backdrop of economic uncertainty, with some analysts suggesting that Bitcoin was decoupling from traditional stock markets. The Fear & Greed Index sank to 27, indicating growing market caution.

Technical analysis revealed a double-top formation in Bitcoin's price action, a bearish reversal pattern with a neckline around the $91,000 region. The price had broken below this level, leading to a sharp decline. Currently, Bitcoin is consolidating near the $81,000 level, which has acted as strong horizontal support. The price is hovering just below the 50-day Simple Moving Average (SMA) at $87,187.95 and near the 200-day SMA at $86,664.32, indicating a struggle between buyers and sellers. The Relative Strength Index (RSI) is at 46.70, slightly below the neutral 50 level, suggesting a lack of strong momentum in either direction but leaning towards bearishness. Meanwhile, the Moving Average Convergence Divergence (MACD) shows a bullish stance as the blue line crosses above the orange signal line.

Analysts predict that if Bitcoin fails to break above the $87,000 resistance level, it could see further downside toward the next key support levels at $80,000 and possibly $75,000. On the bullish side, if the price manages to reclaim the 50-day and 200-day SMAs and break above $90,000, it could invalidate the bearish thesis and retest the $100,000 zone. Despite the current bearish signals, some analysts see the potential for one more upward price movement before the market stabilizes.