Bitcoin’s price trajectory has taken a bearish turn as Trump’s new tariff policies spark widespread market uncertainty, with the leading cryptocurrency forming a death cross pattern at the $76,000 level. The technical indicator, coupled with macroeconomic pressures, suggests potential further downside ahead.
Market Impact of Trump’s Tariff Policy
The cryptocurrency market faced significant selling pressure after President Trump’s announcement of country-specific reciprocal tariffs, scheduled to take effect on April 9. The baseline 10% tariff implementation on April 5 has already triggered substantial market volatility, with Bitcoin dropping from $82,300 to $74,500 within 24 hours.
Technical Analysis Signals Bearish Momentum
The formation of a death cross – where the 50-day moving average crosses below the 200-day moving average – has historically preceded extended downward price movements. Veteran analyst Ali Martinez’s analysis suggests this technical pattern could signal more pain ahead for Bitcoin holders.
Adding to the bearish outlook, respected trader Peter Brandt identified a symmetrical triangle pattern with a critical wedge retest at $81,024. His analysis points to a potential retracement to the $54,000 level, representing a 50% correction from recent highs.
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Altcoin Market Shows Greater Weakness
The broader cryptocurrency market has experienced even more severe declines, with Ethereum dropping 17.2%, Solana falling 16%, and XRP declining 15.8%. The total crypto market capitalization has shed approximately $130 billion during this period.
Strategic Buying Opportunities Emerge
Despite the bearish signals, some analysts view the current market conditions as a potential buying opportunity. CryptoQuant analyst BorisVest suggests that the $65,000-$71,000 range could present favorable entry points for investors with appropriate risk tolerance levels.
FAQ Section
Q: What is a death cross in Bitcoin trading?
A: A death cross occurs when the 50-day moving average crosses below the 200-day moving average, typically signaling bearish market sentiment and potential further price declines.
Q: How do Trump’s tariffs affect Bitcoin price?
A: The tariffs create broader market uncertainty and risk-off sentiment, leading investors to reduce exposure to volatile assets like cryptocurrencies.
Q: What are the key support levels to watch?
A: Current critical support levels include $74,500, $71,000, and $65,000, with $54,000 representing a major technical support level.
