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CoinTelegraph
Bitcoin enthusiasts uphold $80K backstop amidst trade war tensions throwing US stock market into turmoil.
Despite the turmoil shaking the equities markets in the wake of the April 4 Wall Street opening, the Bitcoin (BTCUSD) price managed to stave off the mayhem by maintaining above the $82,000 mark.
US stocks recorded unprecedented losses with forecasts hinting at a drawn-out trade war. Data from CoinTelegraph Markets Pro and TradingView revealed Bitcoin’s volatile swings within lower timeframes as the daily peak near $84,700 dissipated with a $2,500 drop at the onset of the US trading session.
The fear of a prolonged US trade war followed by a possible recession triggered the market decline. The S&P 500 and Nasdaq Composite Index both experienced an additional 3.5% dip post-opening.
The Kobeissi Letter, a trading resource, referred to the imposed tariffs as the commencement of the “World War 3” of trade wars. The S&P 500 registered two-day losses surpassing -8%, equating to -$3.5 trillion in market cap, the most substantial 2-day fall since the 2020 pandemic.
The Nasdaq 100 made records the previous day with its largest single-day points loss to date.
Despite the surpassing expectations of the March nonfarm payrolls print, US jobs data had little effect on the already panicked markets. However, market expectations for interest rate cuts from the Federal Reserve increased, with a 40% chance predicted for the Fed’s May meeting according to data from CME Group’s FedWatch Tool.
Bitcoin managed to avert major breakdown, prompting market analysts to seek validation for inherent BTC price resilience. Rekt Capital, a popular trader and analyst, found the longer-timeframe indicators promising. He pointed out the early signs of an emerging Exaggerated Bullish Divergence based on the relative strength index (RSI) behavior on the daily chart.
Another trader, Cas Abbe, also commented on the comparatively robust trading of Bitcoin amid the risk-asset meltdown. He noted that despite the stock market experiencing its worst day in 5 years, Bitcoin did not hit a new low.
Historically, BTC bottoms out before the stock market, thereby suggesting that $76.5K was the bottom. Now, he waits for a breakthrough above the $86.5K level for further upward movement.
Previously, CoinTelegraph reported on BTC price bottom targets, including the old all-time highs of $69,000 from 2021.
This article does not offer investment advice or recommendations. Every investment and trading decision involves risk, and readers should perform their own research when making a decision.
