Tariff Fears Finally Breach Bitcoin’s Resistance Level
After defying market gravity for days while stocks plummeted, Bitcoin surrendered to selling pressure Sunday evening as fears over global trade war fallout spilled into cryptocurrency markets. The world’s leading digital asset fell 6% to $77,730.03, breaking below the psychological $80,000 barrier that had mostly held throughout 2025, according to CNBC.
The weekend decline marks a departure from Bitcoin’s unexpected resilience last week, when it maintained stability between $82,000-$83,000 even as equity markets suffered their worst losses since 2020 following President Trump’s sweeping tariff announcement. That brief decorrelation from traditional markets had prompted some analysts to reconsider Bitcoin’s role as a potential safe haven.
“The cryptocurrency’s sudden alignment with risk assets suggests that tariff-driven recession fears are now overshadowing Bitcoin’s traditional narrative as an inflation hedge,” said Marcus Reynolds, cryptocurrency strategist at Digital Asset Research. “This reinforces that during periods of extreme market stress, correlations across asset classes tend to converge toward one.”
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Liquidation Cascade Intensifies Selling
The downward momentum accelerated as leveraged positions unraveled across trading platforms. CoinGlass data revealed more than $247 million in Bitcoin long liquidations over a 24-hour period – the highest single-day figure since March 7. Ether positions fared even worse proportionally, with $217 million forcibly liquidated as its price tumbled approximately 12%.
These liquidations create a self-reinforcing cycle where forced selling drives prices lower, triggering additional liquidations and magnifying market movements. The weekend timing exacerbated volatility, as thinner trading volumes typically characterize cryptocurrency markets during non-business hours.
“Weekend price action in crypto often foreshadows Monday’s stock market direction,” noted financial analyst Sylvia Chen. “With Bitcoin finally capitulating after its temporary resilience, equity traders are bracing for potentially rougher waters ahead when markets open.”
BREAKING: Bitcoin falls below $81,000 as Trump Administration officials say tariffs will not be delayed.
— The Kobeissi Letter (@KobeissiLetter) April 6, 2025
We are 4 hours out from US stock market futures opening. pic.twitter.com/NrgQp7wdWX
Technical Picture Deteriorates
Bitcoin’s technical outlook has significantly weakened with this latest decline. Investopedia analysis highlights the formation of a “death cross” – where the 50-day moving average crosses below the 200-day moving average – a pattern traditionally viewed as signaling extended bearish conditions.
The cryptocurrency had already broken down from a rising wedge pattern in late March, typically considered a bearish continuation signal. Sunday’s decline confirmed this technical deterioration, breaking through multiple support levels that had previously contained selling pressure.
Traders are now watching key support zones at $74,000, where a multi-month trendline connecting last year’s significant peaks may provide temporary relief. Should that level fail, technical analysts identify $65,000 as the next major support threshold, coinciding with August and September 2024 highs.
Global Context Intensifies
The cryptocurrency market’s decline occurs against a backdrop of unprecedented global market turmoil. In just two trading sessions following Trump’s tariff announcement, global equities have lost $7.46 trillion in market value according to S&P Dow Jones Indices – with $5.87 trillion vanishing from U.S. markets alone.
China’s Friday announcement of matching 34% retaliatory tariffs escalated fears of a global trade war that could trigger worldwide recession. This geopolitical standoff has overshadowed positive cryptocurrency regulatory developments that had previously been expected to drive digital asset prices higher in 2025.
Bitcoin is now down 15% year-to-date and sits 28% below January’s all-time high. For long-term investors looking toward potential recovery, the $87,000 level represents significant overhead resistance, where the 50-day and 200-day moving averages converge with multiple trading levels established since November 2024.
As traditional stock futures indicate another brutal session ahead, cryptocurrency markets continue trading through the weekend, potentially offering an early glimpse of broader market sentiment before Monday’s opening bell. With Bitcoin’s brief resilience now broken, traders are reassessing whether digital assets can provide any shelter from the growing tariff-induced economic storm.
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