Bitcoin slipped under $82,000 support, and the Nasdaq Composite is on track for the biggest one-day percentage drop since March 2020. Stock and crypto traders are reeling from the aftermath of the U.S. President Donald Trump’s Liberation Day. All trade partners of the United States are facing the heat of reciprocal tariffs.
Will Bitcoin (BTC) recover from the shock? What’s in store for crypto traders and the sector?
Trump tariffs take a toll on Bitcoin and crypto
U.S. crypto stocks suffered a steep correction on Thursday, in response to President Trump’s tariff announcements. The tariffs may have Liberated the US, the announcement put crypto and stock traders in a fix.
Crypto traders turned more fearful than ever before, the Fear & Greed Index reads 25, and this corresponds to “Extreme Fear.” Traders have been fearful yesterday, last week and last month. However, this level of fear corresponds to the uncertainty in the market.
Trump’s announcement sent Bitcoin to a low of $81,211 followed by a rebound above the $82,000 support. Bitcoin traders have been through worse crashes where BTC erased between 20 and 40% of its value in flash crashes.
The largest cryptocurrency recovered from each decline, as institutional investors continued to pour capital and whales accumulated BTC.
Bitcoin traders react to tariff announcements
Santiment data shows that in the last 30 days, Bitcoin whales holding between 1,000 and 10,000 BTC and 100,000 and 1 million tokens have both added to their holdings. The two categories of whale wallets are likely buying the dip during the correction in Bitcoin prices.
Whale accumulation is typically considered a bullish sign, however, BTC’s rangebound price action defies the trend.
Bitcoin traders’ reaction to tariff announcements was relatively muted in light of catalysts such as whale accumulation and institutional capital flows to U.S.-based Spot ETFs. A bigger reaction was expected by derivatives traders, BTC however continues to hold steady above a key support at $82,000 on Thursday.
Bitcoin price forecast
Bitcoin is consolidating under sticky resistance at the $85,000 level. The largest cryptocurrency could test resistance at $85,519 if there is a sustained upward momentum in BTC price. This marks nearly 4% gain from the current level.
The next key resistance for Bitcoin is $90,000 and the 50% Fibonacci retracement of the decline from the all-time high to the March low, at $93,172.
The two technical indicators on the daily timeframe correspond with further correction in Bitcoin. The RSI reads 43, and is under the neutral level. MACD flashes red histogram bars above the neutral line, meaning that the underlying momentum in Bitcoin price is turning bearish.
Bitcoin could test support at the upper boundary of an FVG on the daily timeframe, at $82,273. A daily candlestick close under this level could mark the end of the consolidation period and a beginning of a downward trend in Bitcoin.
Derivatives traders expectation from Bitcoin
Derivatives data from Coinglass shows that traders are betting on an increase in Bitcoin prices. While previous tariff announcements have resulted in a negative impact on U.S. equities and Bitcoin price, this time traders expect a change.
Bitcoin holds its ground and defends key support, while traders open long positions betting on a gain in BTC, despite the uncertainty in the market. The long/short ratio on Binance and OKX exceeds 1. Options volume climbed 71% overnight, and open interest observed a modest 5% increase.
Sidelined buyers need to monitor the activity of derivatives traders closely before opening a long position in Bitcoin.
Experts predict where Bitcoin is headed in the Trump era
Maksym Sakharov, Co-Founder and Board Member of WeFi, discussed Bitcoin’s recent drop under the $82,000 support and the market-wide correction with Crypto.news in an interview. Sakharov said,
“…So far, market proponents say that Trump’s tariffs are primarily a negotiation strategy, and their effect on businesses and consumers will remain manageable. Adding to the uncertainty are the inflationary pressures that could challenge the US Federal Reserve’s rate-cutting outlook. Besides that, an impending fiscal debate in Washington over the federal budget is also causing jitters in the market.
Resolving the debt ceiling remains a pressing issue, as the Treasury currently relies upon extraordinary measures to meet US financial obligations. The exact timeline for when these measures will be exhausted is unclear, but analysts anticipate they may run out after the first quarter.”
Sergei Gorev, Head of Risk, YouHodler acknowledges that Trump’s Liberation Day has created a bearish scenario for American stock markets, and it is tough for crypto traders too. Gorev told Crypto.news,
“…It will be tough for the cryptocurrency market to show its positive attitude if the decline in American indices continues. The leading indicator of the increasing pessimism of investors is the regular updating of the price minimum of the ratio of ETH to BTC. And the continued growth of the dominance of BTC capitalization relative to all other crypto products. This fact also highlights investors’ uncertainty about the future of the crypto space. Until the S&P 500 index returns above its 200-day moving average again, it may be risky to invest in cryptocurrencies.”
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
