Source: Cointelegraph.com NewsBitcoin (BTC) is turning back the clock this week as tariff mayhem drags BTC price action toward 2021.<\/p>\n
Bitcoin is giving up bull market support lines left and right as a new \u201cdeath cross\u201d completes on the BTC\/USD daily chart.
\nCPI week is firmly overshadowed by US trade tariffs and their increasingly global impact on stock markets.
\nBoth crypto and TradFi market participants are drawing comparisons to \u201cBlack Monday\u201d 1987 and the COVID-19 cross-market crash.
\nBitcoin\u2019s speculative investor base is firmly out of pocket and likely increasingly tempted to panic sell.
\nSentiment everywhere is nonexistent, with the TradFi Fear & Greed Index recording its lowest score in history.<\/p>\n
BTC price \u201cdeath cross\u201d brings 2021 highs into play
\nBitcoin risks falling below its old all-time highs from March 2024 next, Data from Cointelegraph Markets Pro and TradingView shows.
\nBTC\/USD 1-hour chart. Source: Cointelegraph\/TradingViewAfter slipping below $75,000 for the first time since November, BTC\/USD is rapidly reawakening long forgotten bull market support lines. These include $69,000, a level that first appeared in 2021.
\nThe dive, which came as a copycat move several days after stock markets began to suffer major losses, caught many by surprise.<\/p>\n
Is our uncorrelated hedge in the room right now?\u2014 Charles Edwards (@caprioleio) April 6, 2025<\/p>\n
\u201cThis is $BTC’s last chance to maintain its macro uptrend structure,\u201d popular analyst Kevin Svenson summarized in a warning on X.
\nBTC\/USD 1-day chart. Source: Kevin Svenson\/XAmong the trend lines now lost as support is the 50-week exponential moving average (EMA) at around $77,000.
\nIn an X thread on the coming week, popular trader CrypNuevo described price violating that level as the \u201conly short triggerr I’ll be paying attention to.\u201d
\n\u201cIf we drop below support and get back above it, then I’ll consider this as a deviation and that will be my long trigger fo a push up back to $87k,\u201d he explained.
\nBTC\/USDT 1-week chart with 50EMA. Source: CrypNuevo\/XTrading resource Material Indicators, meanwhile flagged a telltale \u201cdeath cross\u201d on daily timeframes. This typical bearish signal involves the 50-day simple moving average (SMA) crossing below its 200-day equivalent.
\n\u201cThe momentum carrying through that Death Cross, puts BTC at a critical macro support test,\u201d it told X followers.\u00a0
\n\u201cStay tuned\u2026\u201d
\nBTC\/USD 1-day chart with 50, 200 SMA. Source: Cointelegraph\/TradingViewCPI week meets emergency rate cuts
\nLike last week, US trade tariffs are the major talking point across financial markets worldwide.
\nThe impact of measures announced last week continues to be felt, as downside momentum on risk assets now becomes fueled by the prospect of more tariffs set for release on April 9.
\nSpeaking to mainstream media over the weekend, Commerce Secretary Howard Lutnick confirmed that the US government would go ahead with the measures without delay.
\n\u201cThe tariffs are coming,\u201d he told CBS News.
\nWith sentiment diving and panic setting in among market participants from trading desks to hedge funds, little attention is being paid to the week\u2019s other potential volatility catalysts.
\nThese will come in the form of US inflation data, itself a key topic as tariffs risk causing unexpected price growth.
\nThe March prints of the Consumer Price Index (CPI) and Producer Price Index (PPI) are due on April 10 and 11, respectively.
\nPreviously, Jerome Powell, Chair of the Federal Reserve, said that while tariffs would have a palpable effect on the US inflation battle, it would be difficult to assess this accurately in advance.
\n\u201cAs the new policies and their likely economic effects become clear, we will have a better sense of the implications for the economy and for monetary policy,\u201d he subsequently said during a speech last week.
\nFed target rate probability comparison for May FOMC meeting. Source: CME GroupMarket expectations of the Fed easing policy to compensate for the tariffs are clearly reflected in interest rate forecasts.
\nThe latest data from CME Group\u2019s FedWatch Tool now shows that consensus favors a 0.25% rate cut at the Fed\u2019s May meeting \u2014 sooner than the June deadline assumed until this weekend.
\nIn informal circles, including social media and prediction platforms such as Polymarket, bets of an \u201cemergency\u201d rate cut coming sooner are rising rapidly.
\n\u201cThe Federal Reserve may have to make an emergency rate cut soon,\u201d Professional Capital Management founder and CEO Anthony Pompliano predicted at the weekend.\u00a0
\n\u201cInflation has fallen to the lowest levels since 2020. If this continues, it will be a BIG problem.\u201d
\nOdds for 2025 Fed rate cut as of April 7 (screenshot). Source: Polymarket\u201cBlack Monday\u201d 1987 or COVID-19 repeat?
\nIn the short term, the \u201ceffects\u201d of tariffs are feared to include a marketwide crash similar to \u201cBlack Monday\u201d in 1987.\u00a0
\nAs Cointelegraph reported, market responses to the first round of reciprocal tariffs laid the foundations for turmoil at the upcoming Wall Street open.<\/p>\n
A 10% dip in two consecutive days has only happened for the fourth time in history.October 1987.October 2008.March 2020.April 2025.In 1987 & 2020, it marked the bottom.In 2008, it took one more month to mark the bottom.\u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) April 6, 2025<\/p>\n
For trader, analyst and entrepreneur Micha\u00ebl van de Poppe, crypto\u2019s Black Monday moment is already here. Source: Cointelegraph.com NewsBitcoin (BTC) is turning back the clock this week as tariff mayhem drags BTC price action toward 2021. Bitcoin is giving up bull market support lines left and… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126603"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=126603"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/126603\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=126603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=126603"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=126603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\u201cI think we’ll see a rollercoaster 1-2 weeks in which we’re having a test of the lows for Bitcoin. It can go as deep as $70K from here,\u201d he warned X followers on April 7.
\nVan de Poppe saw an emergency Fed rate cut as the only logical escape path for stemming the risk-asset bleed.
\nBTC\/USDT 1-day chart with RSI data. Source: Micha\u00ebl van de Poppe\/XTrading resource The Kobeissi Letter meanwhile pointed to heavy losses on both Chinese and Japanese stocks during the week\u2019s first Asia trading session.
\n\u201cWe are seeing the market’s first circuit breakers since March 2020,\u201d it reported.
\nKobeissi described market sentiment as \u201cpolarized,\u201d drawing multiple comparisons to the COVID-19 cross-market crash in March 2020 and beyond.
\n\u201cThis is by far the most panic we have seen in the market since March 2020. In fact, we may be nearing investor panic levels ABOVE March 2020,\u201d it added.\u00a0
\n\u201cIt’s currently a widespread rush to the exit for investors.\u201d
\nBitcoin\u2019s new hodler losses multiply
\nOn Bitcoin, the investor cohort likely first to capitulate are short-term holders (STHs) \u2014 the market\u2019s more speculative entities with a buy-in date within the last six months.
\nAs Cointelegraph reported, these investors are highly sensitive to BTC price volatility, and that their panic selling creates a vicious circle for the market.
\nData from onchain analytics platform CryptoQuant now shows that the STH cohort is falling increasingly into the red.
\nThe Spent Output Profit Ratio (SOPR) metric, which tracks STH coins moving in profit or loss, is currently below breakeven.
\n\u201cWhen STH-SOPR falls below 1.0, it reflects that short-term investors are realizing losses \u2014 a classic signal of capitulation,\u201d CryptoQuant contributor Yonsei Dent noted in one of its \u201cQuicktake\u201d blog posts.
\n\u201cLooking back at 2024, major price corrections were accompanied by sharp drops in STH-SOPR, often reaching or falling below the -2 standard deviation band. These moments \u2014 notably in May, July, and August \u2014 aligned with periods of panic selling among short-term market participants.\u201d
\nBitcoin STH-SOPR chart. Source: CryptoQuantBelow $80,000, BTC\/USD is now comfortably under the aggregate cost basis for STH investors, CryptoQuant confirms.
\nBitcoin\u2019s total aggregate cost basis, which includes long-term holders, currently sits at $43,000.
\nBitcoin STH cost bases. Source: CryptoQuantSentiment eclipses bearish records
\nIn a sobering yet arguably bizarre move, the extent of bearish sentiment on traditional markets, as measured by the Fear & Greed Index, has fallen to extremes.
\nRelated: Bitcoin crash risk to $70K in 10 days increasing \u2014 Analyst says it\u2019s BTC\u2019s \u2018practical bottom\u2019
\nThe latest data from the Index, which uses a basket of factors to compute the market mood, gives a reading of just 4\/100.
\n\u201cIt\u2019s never been this low: not in COVID, not after FTX collapse,\u201d popular crypto commentator Atlas noted.
\nFear & Greed Index (screenshot). Source: CNNCrypto continues to weather the storm somewhat better, with the Crypto Fear & Greed Index at 23\/100 on April 7.
\nCrypto Fear & Greed Index (screenshot). Source: Alternative.meBeyond the panic, some voices are cautiously hinting that now is an ideal moment to \u201cbuy the dip\u201d \u2014 whether on stocks or crypto.
\n\u201cThis doesn’t necessarily mean the absolute bottom is in, but is generally at least a local opportunity,\u201d the founder of quantitative Bitcoin and digital asset fund Capriole Investments, argued in an X thread.
\nEdwards tallied up both bullish and bearish arguments, and concluded that much risk remained, especially to Bitcoin\u2019s bull market.
\n\u201cTo be fair Bitcoin did very well last week, but has played catch up (to the downside) over the weekend. Pending some large unforeseen news, it’s going to be hard for Bitcoin to fight a correlation=1 event across risk assets, we saw something similar in early 2020,\u201d he commented.\u00a0
\n\u201cThat said, there is historically significant relative strength here to note. We can likely expect Bitcoin to rally the hardest off the bottom, whereever and whenever that is.\u201d
\nThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"