The price of Bitcoin (BTC) surged to $78,300 at the start of Wall Street trading on April 9, as the behavior of equity markets continued to unsettle traders dealing with risk assets. According to data from various market platforms, BTC/USD aimed for five-month lows below $75,000 before seeing a recovery entering the New York trading hours. The intensifying US-China trade dispute had kept stock traders on alert, resulting in Bitcoin losing the $80,000 mark the day before.
Unprecedented market activity coincided with US tariff announcements and China’s counter-tariffs, leading the S&P 500 to achieve record highs as it rebounded sharply from its lows. It was noted that the S&P 500 had experienced its largest intraday reversal ever, surpassing significant events of 2020, 2008, and 2001.
Volatility emerged from the slightest triggers, with markets particularly reactive to statements from the US President. Concerns were raised about the current market dynamics, where both bullish and bearish investors felt uneasy. The volatility led to fluctuations in market capitalization reaching up to $5+ trillion based on a single social media post from the President, resulting in erratic price movements that saw rapid gains flip into substantial losses and vice versa.
In the crypto segment, similar pressures were evident, with the Crypto Fear & Greed Index falling to its lowest point since early March. One trading expert expressed doubts about the situation improving in the short term, as the turmoil seemed likely to linger. They suggested a cautious approach, despite some cryptocurrencies being available at attractive prices.
Shifting focus back to Bitcoin, a well-known trader highlighted a newly identified resistance level linked to a recent “gap” in Bitcoin futures. The analysis indicated that Bitcoin had broken down from its previous sideways range and confirmed this with a bearish retest, marking the gap between $82,000 and $85,000 as a new resistance level.
Further analysis suggested a broader price range for Bitcoin with $71,000 acting as a lower threshold based on previous trading volumes. The expert noted that Bitcoin was experiencing continued downward movement after briefly peaking into early March levels, confirming new resistance around this low.
Several analysts have identified a potential long-term reversal point for Bitcoin around $70,000 or slightly below that level.
This content is for informational purposes only and does not constitute investment advice. All investment decisions carry risk, and it is important for readers to perform their own research before making any financial choices.