Bitcoin (BTC) reached new heights on April 2, 2025, as it opened on Wall Street, hitting local highs of $86,444 on Bitstamp. This marked the best performance for BTC/USD since March 28, 2025, amid a backdrop of significant market volatility as traders braced for U.S. President Donald Trump’s announcement of a sweeping round of reciprocal trade tariffs.
As the clock ticked towards 4 PM Eastern Time, when Trump was set to unveil the tariffs from the White House Rose Garden, Bitcoin managed to recover some lost ground, acting in a key area of interest filled with long-term trend lines. According to data from Cointelegraph Markets Pro and TradingView, the cryptocurrency’s ability to bounce back came despite slight downturns in U.S. stocks following the market's opening.
Popular trader and analyst Rekt Capital commented on the current state of Bitcoin, noting that the consolidation between the two Bull Market EMAs (Exponential Moving Averages) continues. He highlighted the 21-week EMA, which represents a price of $87,650. Rekt Capital shared on X, "The declining nature of this EMA will make it easier for $BTC to breakout." This suggests that Bitcoin is on the verge of a potential upward movement, as it attempts to break out of an extended downtrend on daily timeframes.
Further supporting this bullish sentiment, Rekt Capital noted that Bitcoin is just one daily candle close above the downtrend away from entering a new technical uptrend. The daily relative strength index (RSI) for Bitcoin recently broke free from a downtrend that had persisted since November 2024, indicating a possible shift in momentum.
However, not all analysts share this optimistic view. Trading firm QCP Capital expressed caution, stating that risk assets are likely to remain under pressure following the tariffs announcement. In a message to their Telegram channel subscribers, they remarked, "In crypto, sentiment remains broadly subdued. BTC continues to trade without conviction, while ETH is holding the line at $1,800 support." They noted that numerous coins have seen significant losses year-to-date, with some dropping over 30% in the past week alone.
Despite the bearish outlook from some quarters, other industry participants maintain a more hopeful perspective. Asset management firm Swissblock commented that there is no indication of an imminent collapse in Bitcoin. They posed a critical question on X, asking, "Will $BTC hold as a hedge, or follow TradFi into a pullback?" They also warned of the potential for a return to $76,000 multimonth lows, which would represent an 11% drop from current levels.
As the market continues to react to external pressures, potential trading strategies are emerging. One trader suggested a buying opportunity closer to the $81,000 level, with a short-term target of $85,000 and a stop loss set at $79,000. The trader noted that Bitcoin rallied slightly during the trading session on April 2, but warned that the 200-day EMA sitting just above could pose resistance.
If Bitcoin manages to rally from its current position, the next barrier to watch would be the $88,000 level. The trader emphasized that breaking above the crucial $90,000 level, which has marked the top of recent consolidation, would signal a significant shift in market dynamics.
Technical analysis shows that Bitcoin has been trading sideways for a considerable time, leading some traders to consider this an accumulation phase. Long-term Bitcoin holders may be looking to add to their positions, while short-term traders face a more tactical environment filled with noise and uncertainty.
As the day unfolded, Bitcoin’s price momentum reflected a complex landscape, with some traders expressing optimism for future gains while others remained wary of external market pressures. The day’s trading saw Bitcoin top the $86,000 level, with a reported price of $83,219.70, reflecting a 5-day change of +0.88% but a year-to-date change of -5.10%.
In summary, Bitcoin’s performance on April 2, 2025, encapsulates the current volatility and uncertainty in the cryptocurrency market. With the looming threat of new trade tariffs and mixed sentiments among traders and analysts, the future trajectory of Bitcoin remains a topic of intense discussion and speculation.
This article does not constitute investment advice. Every investment and trading move involves risk, and readers should conduct their own research before making decisions.
