Bitcoin (BTC) aimed for a rebound as the Wall Street market opened on April 7, coinciding with a recovery in US stocks that had previously plummeted by over 4%.
BTC/USD 1-hour chart. Image Source: TradingView
Bitcoin rallies alongside US markets
Data from various analytics platforms indicated that BTC/USD focused around the $80,000 mark after sinking to five-month lows.
The effects of US trade tariffs continued to reverberate through global markets, resulting in significant losses for Asian stocks by day’s end.
Concurrently, reports suggesting a possible 90-day delay on the tariffs, amidst negotiations with over 50 US trading counterparts, helped alleviate losses in futures markets prior to the opening, allowing the S&P 500 and Nasdaq Composite Index to avoid a catastrophic “Black Monday” scenario reminiscent of 1987.
“Nasdaq futures fell as low as -7% last night,” a trading resource noted during its ongoing updates.
This source also recognized that the S&P 500 had plummeted more than 20% since its all-time highs in February, marking its entry into “bear market territory” for the first time since 2022.
S&P 500 1-day chart. Image Source: TradingView
In a continuation of this discussion, a trading firm remarked on the “remarkable” level of international involvement regarding tariffs.
“As countries scramble to secure their interests, markets will likely remain on edge,” it concluded in a recent update to subscribers.
“The president, showing no intention of backing down, stated he doesn’t want stock prices to decline, ‘but sometimes you have to take medicine.’ The confidence and credibility of the U.S. economy are at stake, and if there isn’t significant progress before Wednesday, global markets—and Trump himself—could face a very bitter pill to swallow.”
Fed target rate probability comparison for May FOMC meeting. Image Source: CME Group
According to data from the CME Group, market expectations around interest rate cuts by the Federal Reserve are evolving, with the June meeting now seen as a critical deadline.
Bitcoin’s support level reaches $69,000
Bitcoin also endeavored to strengthen support within the mid-$70,000 range, approaching the previous all-time highs recorded in March 2024.
Related: Black Monday 2.0? 5 things to know about Bitcoin this week
In its latest analysis, an onchain analytics firm pointed out that the recent lows align with the realized price of significant portions of the BTC supply.
“Currently, $BTC appears to have found a footing at $74K, corresponding with the first substantial supply cluster below $80K—over 50K $BTC at $74.2K,” it reported.
“This level is primarily held by traders who were active for five months, consistently increasing their cost basis until March 10, after which they have remained inactive.”
Bitcoin supply cost basis data. Image Source: Glassnode
The firm went on to note that between the lows and $70,000, there are an additional 175,000 BTC in “cost basis clusters.”
“The most substantial level within this range is $71.6k, holding approximately 41k $BTC, while another key support level exists at $69.9k, where around 68k $BTC are situated,” it confirmed.
As previously reported, $69,000 and the vicinity is viewed as a dependable support zone for Bitcoin prices, deemed statistically unlikely to fail.
This article does not constitute investment advice or recommendations. All investments and trading decisions involve risk, and readers should conduct their own research when making decisions.