Bitcoin Plunges Below $78,000 As Market Panic Spreads
Bitcoin’s price tumbled below $78,000 Sunday evening as the flagship cryptocurrency finally joined the broader market selloff that has wiped trillions from global equity values. After showing remarkable resilience throughout last week’s stock market collapse, Bitcoin shed 6% to trade at $77,730.03, according to CNBC, marking a 28% decline from January’s all-time high.
The weekend sell-off triggered a cascade of forced liquidations as leveraged traders were compelled to close positions. Data from crypto analytics platform CoinGlass revealed that Bitcoin experienced more than $247 million in long liquidations within a 24-hour period, while Ether faced $217 million in similar forced closures.
Other cryptocurrencies suffered even steeper losses, with Ether and Solana-linked tokens plummeting approximately 12% each as the digital asset market finally succumbed to fears stemming from President Trump’s sweeping tariff policy.
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Breaking Correlation Pattern
The weekend drop represents a significant shift from Bitcoin’s performance last week, when it maintained its value between $82,000 and $83,000 while stocks plummeted and even traditional safe-haven assets like gold declined. This temporary decoupling had prompted speculation among crypto enthusiasts that Bitcoin might be establishing itself as a counter-cyclical asset.
“Bitcoin’s price may attract support in this region near last year’s August and September peaks, which closely align with the October trough,” notes Investopedia in its technical analysis of key support levels. The financial education site identified $74,000 as the next significant support threshold, followed by potential floors at $65,000 and $57,000 if selling pressure intensifies.
The cryptocurrency is now down 15% year-to-date, a stark reversal after more than doubling in value during 2024. Market analysts suggest that absent any crypto-specific catalyst, Bitcoin will likely continue tracking equities as global recession fears overshadow the regulatory tailwinds that were expected to benefit digital assets this year.
Wall Street immediately papered over Bitcoin with their synthetic ETFs…
— 🇺🇸PORT🇺🇸🦍🟦 (@PORTmetaXYZ) April 7, 2025
Nations will do the same with Bit bonds…
In the end it will always be the native asset that is the most scarce and desirable. pic.twitter.com/W9BZ0Wqvzl
Global Market Context
The cryptocurrency plunge comes as weekend stock futures pointed to another brutal session ahead for traditional markets. In the two trading days following Trump’s tariff announcement, global stocks have already lost $7.46 trillion in market value based on the S&P Global Broad Market Index, according to S&P Dow Jones Indices data cited by CNBC.
That staggering figure includes $5.87 trillion erased from U.S. markets alone, with international exchanges accounting for an additional $1.59 trillion in losses. The coordinated selloff reflects growing investor anxiety about a potential global trade war following China’s Friday announcement of retaliatory tariffs matching Trump’s aggressive stance.
Technical Signals Worsen
Bitcoin’s chart pattern has displayed increasingly bearish signals in recent weeks. After falling below its 200-day moving average last month, the cryptocurrency’s price consolidated within a rising wedge formation before breaking downward in late March—a technical pattern typically interpreted as signaling continued declines.
Adding to the negative outlook, Bitcoin has now formed what technical analysts call a “death cross,” where the 50-day moving average crosses below the 200-day moving average. This ominous chart pattern frequently precedes extended bearish periods, though its predictive reliability in cryptocurrency markets remains debated.
For potential recovery scenarios, analysts are watching the $87,000 level as a critical resistance zone. This area represents a confluence of technical factors, including the 50-day and 200-day moving averages, along with multiple comparable trading levels dating back to early November 2024.
As traditional markets prepare to open Monday morning, cryptocurrency traders are bracing for potential further volatility. With Bitcoin now trading 24/7, its weekend performance often serves as an early indicator of market sentiment before stock exchanges resume trading—a dynamic that adds particular significance to Sunday’s substantial decline.
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