In a tumultuous week for global markets, Bitcoin (BTC) has begun showing signs of decoupling from traditional stock markets, even as it grapples with significant volatility. Last week, while Bitcoin remained relatively flat, the S&P 500 experienced a sharp plunge of 9%. This sell-off was largely triggered by U.S. President Donald Trump's announcement of global tariffs on April 2, which escalated further on April 4 as China retaliated with new tariffs on U.S. goods. The fallout from these developments has not spared other assets, with gold also witnessing a decline of 1.9%.
Mike Alfred, founder of Alpine Fox, noted on X that a bull market in gold tends to be bullish for Bitcoin. He remarked, "During previous cycles, gold led Bitcoin for a short while, but eventually, Bitcoin caught up and grew ten times or more than gold. It won’t be any different this time." This sentiment comes amidst fears of a potential global trade war that could lead to a recession, prompting many investors to reevaluate their positions in both stocks and cryptocurrencies.
Despite the overall market downturn, Bitcoin's recent performance has sparked cautious optimism among traders. The cryptocurrency has been consolidating between $81,000 and $88,500, with a critical resistance point at $89,000. If Bitcoin manages to break above this level, analysts predict it could ascend toward the $100,000 mark. However, if it fails to hold above the vital support at $80,000, a drop to $76,606 and potentially $73,777 could follow.
Bitcoin bulls have struggled to push the price above the resistance line, yet they have not surrendered significant ground to the bears. This indicates that they are maintaining pressure. The 20-day exponential moving average currently stands at $84,241, and the relative strength index (RSI) is just below the midpoint, suggesting a balance between supply and demand. A break and close above the resistance line would favor the bulls.
Meanwhile, the altcoin market has also seen significant fluctuations. Pi Network (PI), for instance, has been in a strong downtrend since hitting $3 on February 26, 2025. However, a relief rally on April 5 showed initial signs of buying at lower levels. Traders are keeping a close eye on the 20-day EMA at $0.85, as any recovery is expected to face selling pressure at this level. If the PI/USDT pair can maintain its position above the 20-day EMA, it could potentially rally to the 50% Fibonacci retracement level of $1.10 and then to $1.26. Conversely, a break below the critical support level of $0.40 could send it tumbling to $0.10.
OKB (OKB) has also made headlines, experiencing a sharp turn on April 4, when it closed above the moving averages. The price surged above the short-term resistance at $54 on April 6, raising hopes of a continued upward trajectory. If the OKB/USDT pair can break above the resistance line of its descending channel, it could climb to $64 and potentially $68. However, traders must remain vigilant as a downturn below $54 could lead to further oscillation within the channel.
In contrast, GateToken (GT) has found support at the 50-day SMA ($22.05) for several days, but traders are wary of a potential breakdown. A break and close above $23.18 could propel the price to $24, while failure to maintain above the 50-day SMA could see the pair drop to $21.28 or even $20.79.
Cosmos (ATOM) is attempting to form a bottom but is currently facing selling pressure at $5.15. If it can rebound off the moving averages, it could signal buying on dips, improving the chances of breaking above the resistance at $5.15. Should this occur, the ATOM/USDT pair could surge toward $6.50 and then $7.17. However, if it breaks below the moving averages, a range formation between $5.15 and $4.15 may ensue.
In the broader market context, Bitcoin's price fell below $78,000 as investors braced for more financial volatility. At one point, it was down 6% at $77,730.03, off its January all-time high by 28%. The cryptocurrency, which typically trades in tandem with tech stocks, saw a divergence last week, holding between $82,000 and $83,000 before the recent downturn.
Investors have been liquidating long positions in response to the recent price drop, with over $247 million in Bitcoin long liquidations occurring in the past 24 hours, according to CoinGlass. Ether also faced significant losses, with $217 million in long liquidations during the same timeframe. The overall market sentiment has been fraught with anxiety as fears of a global recession loom large.
As the dust settles from Trump's tariff announcement, which has already caused global stocks to lose $7.46 trillion in market value, the cryptocurrency markets are bracing for potential further declines. Hedge fund billionaire Bill Ackman has referred to the tariffs as "economic nuclear war," urging a pause to avoid further economic fallout.
With Bitcoin's price hovering near crucial support levels, traders are advised to remain vigilant. The interplay between traditional markets and cryptocurrencies will likely dictate Bitcoin's trajectory in the coming weeks. As the situation evolves, market participants will need to navigate the complexities of a rapidly changing financial landscape.
This article does not constitute investment advice. All trading carries risk, and readers should conduct their own research before making financial decisions.
