Bitcoin experienced dramatic price action on Thursday, with the leading cryptocurrency surging above $88,000 before plummeting below $82,000 in a matter of hours. The intense volatility came after U.S. President Donald Trump’s surprise “Liberation Day” tariff announcement sent shockwaves through global markets, as broader market fears triggered a sharp crypto selloff.
Coinbase Premium Index Shows Weakening U.S. Demand
Despite significant institutional buying, including Michael Saylor’s recent $2 billion Bitcoin purchase, the Coinbase spot price continues to lag behind other exchanges. This persistent discount suggests dampened demand from U.S. investors, even as large buyers step in to support the market.
Technical Analysis: Critical Support at $80K-$89K Range
Bitcoin now faces a crucial test between $80,000 and $89,000, with bulls struggling to reclaim higher ground while bears fail to break key support levels. The 200-day moving average at $86,500 represents a critical technical threshold that must be reclaimed for bullish momentum to resume.
Market Outlook and Trading Implications
For a confirmed recovery, Bitcoin needs to decisively break above the $86,500 level and close the Coinbase premium gap. However, failure to hold the $81,000 support could trigger increased selling pressure and potentially lead to a deeper correction.
Frequently Asked Questions
What caused Bitcoin’s recent price volatility?
The sharp price moves were primarily triggered by President Trump’s new tariff announcements, which sparked broader market uncertainty and risk-off sentiment.
Why is the Coinbase premium important?
The Coinbase premium serves as a key indicator of U.S. institutional demand, with a persistent discount suggesting weaker buying pressure from American investors.
What are the key price levels to watch?
Critical support lies at $81,000, while $86,500 (200-day MA) represents the key resistance level that needs to be reclaimed for bullish continuation.