Bitcoin’s price has faced heightened volatility following China’s announcement of 34% retaliatory tariffs on US imports, a direct response to Trump’s latest trade policies. The tariffs, set to take effect on April 10, have intensified fears of a prolonged US-China trade war, sending shockwaves through global financial markets and the cryptocurrency sector.
Bitcoin briefly dropped below $80,000, marking a sharp decline before stabilizing around $82,000. The sudden price movement triggered $91 million in BTC long position liquidations, with traders bracing for further losses if Bitcoin falls below the critical $81,000 support level.
Analysts warn that $793 million in potential liquidations could occur if Bitcoin dips below this threshold, adding to market uncertainty. Technical Indicators Signal Bearish Trends Bitcoin’s 50-day moving average has crossed below the 200-day moving average, forming a death cross, a bearish technical indicator that suggests further downside risk.
This pattern has historically preceded extended price declines, prompting traders to exercise caution. However, some analysts argue that Bitcoin’s resilience above $82,000 indicates strong buying support, potentially preventing a deeper correction. China’s retaliatory tariffs come 48 hours after Trump imposed 34% tariffs on Chinese goods, escalating tensions between the world’s two largest economies.
The Dow Jones fell nearly 4%, while the S&P 500 and Nasdaq recorded their worst single-day declines since the COVID-19 pandemic. Major US corporations, including Apple and Nike, saw their stock prices tumble, raising concerns that further market volatility could spill over into the crypto sector.
Shogun Lin
