Crypto prices surged after a temporary U.S. tariff halt. $BTC clawed back losses at a critical technical support level, but weak investor sentiment signals caution ahead. Cryptocurrency markets rallied sharply on April 9 after Trump announced a 90-day tariff pause for most nations, though China faced heightened levies. Bitcoin rebounded from a five-month low of $74,000 to $82,077, buoyed by the policy shift, while $ETH and $XRP also pared losses. The rebound followed bitcoin’s dip to its 365-day moving average (MA) at $76,100—a historically pivotal support level that stalled declines in 2021 and 2024 Resistance looms at $84,000 and $96,000, levels tied to trader realized price bands that once acted as support. The tariff pause eased immediate trade tensions but failed to reverse weak on-chain metrics Bitcoin’s 27% drawdown earlier in the week marked the steepest of the cycle, underscoring fragility #BTCRebound
Trump has imposed 104% tariffs on Chinese imports, prompting Beijing to allow the yuan to weaken against the dollar. This move is seen as potentially fueling the next phase of the $BTC bull market. The yuan-to-dollar exchange rate hit a low not seen since 2023, indicating China's willingness to let its currency fluctuate more freely. With the trade war escalating, there is a growing expectation for China to devalue its currency, leading to potential capital flight into assets like $BTC Experts believe that the weakening yuan could drive the Chinese capital into $BTC , which is viewed as bullish. The ongoing trade tensions between the US and China are also expected to result in increased foreign exchange volatility. Historically, Bitcoin has shown an inverse relationship with the US dollar, with a weaker dollar often correlating with a higher BTC price.
Institutional investors are increasingly allocating to crypto, but the key question is whether to focus solely on $BTC or diversify across multiple crypto currencies to optimize risk-adjusted returns and portfolio resilience.
With a total market cap of over $3 trillion, crypto currencies represent approximately 1.5% of the market portfolio of all listed, investable assets that are easily accessible.
$BTC dominates the cryptocurrency market, accounting for 55% of the total market capitalization. The next 19 largest crypto currencies collectively make up around 33%, while the remaining 12% is distributed among all other crypto currencies.
By diversifying, investors can potentially benefit from the rise of new innovative projects and technologies within the space, aligning their portfolios with the broader developments in the digital economy.
BTC price has managed to stay above the $80,000 level as volatility wrecked US stock markets on April 3 and April 4.
The failure of the bears to capitalize on the opportunity shows a lack of selling at lower levels.
US President announced reciprocal tariffs on several countries on April 2.
The fall in the US markets deepened on April 4 after China announced a retaliatory tariff of 34% on all imported US goods starting April 10.
Bitcoin rose above the resistance line on April 2, but the price turned down sharply and broke below the 20-day exponential moving average ($84,483)
The bears will have to sink the price below the $80,000 support to strengthen their position. If they do that, the BTC/USDT pair could retest the March 11 low of $76,606. Buyers are expected to defend this level with all their might because a break and close below $76,606 could sink the pair to $73,777 and eventually to $67,000.
The crucial resistance to watch out for on the upside is $88,500. A break and close above this level will signal that the corrective phase may be over. The pair could then start its journey toward $95,000.
Bitcoin fell late Wednesday after President Donald Trump’s latest tariff announcement roiled markets.
The BTC changed hands a bit above $83,000, dropping from near $88,000 just before Trump unveiled the trade policies.
Trump formally announced reciprocal tariffs that hit a lot of countries, including large U.S. trading partners. Stocks had risen during the day, but many were also hard hit in after-hours action.
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The SEC plans to bring digital asset securities trading compatible with current financial market structures.
The planned changes will create substantial regulatory requirements for crypto exchanges alongside DeFi platforms and token issuers who need to follow stronger reporting and disclosure standards.
Upon complete rollout of the Crypto 2.0 initiative the US would see major changes in its digital asset market regulatory framework. The rising regulatory requirements about transaction disclosures together with trade reporting duties will affect both token issuers along trading platforms operating within the space.
ETH tested the resistance at $2,069 on Monday following its transaction fees dropping to an all time low.
The recent crypto downturn, sparked by Trump's tariff threats, has affected Ether's performance. This altcoin has declined by over 35% in nearly two months, as the crypto market has shown an increased correlation to macroeconomics.
The weakness in prices and ETH ETF flows has also trickled into on-chain activity, with Ethereum's average transaction count dropping to levels last seen before Trump’s election victory
Ethereum moved above the $2,069 resistance of a rectangular channel for the first time in two weeks. The move comes after ETH bounced off a descending channel's support last Friday.
A rejection at $2,069 could send ETH toward the $1,818 support level. However, a firm move above $2,069 could send ETH to test the $2,267 level.
The Relative Strength Index (RSI) is below its neutral level but trending upward, indicating a weakening bearish momentum. Meanwhile, the Stochastic Oscillator (Stoch) crossed to the overbought region, signaling a potential correction.
BTC bulls are trying to make a comeback by maintaining the price above the 200-day simple moving average ($84,899) over the weekend.
Tariff wars have rocked both traditional markets and the cryptocurrency markets in the past few days
Although analysts remain bullish for the long term, some expect a short-term decline.
Bitcoin is struggling to rise and sustain above the 20-day exponential moving average ($85,246), but a positive sign is that the bulls have not ceded much ground to the bears.
That increases the possibility of a break above the 20-day EMA. If that happens, the BTC/USDT pair could rise to the 50-day SMA ($90,469)
Both moving averages are flattish, but the relative strength index (RSI) has risen into the positive zone. That suggests the bullish momentum is picking up. The first sign of strength will be a close above $87,500. That could open the gates for a rise to $92,500.
USDC/USD: The current market price is 1.00005, indicating a slight increase of 0.05% from the previous close.
Support and Resistance Levels Current support levels are 0.99980, 0.99970, and 0.99960; Current resistance levels are 1.00050, 1.00080, and 1.00100. The pivot point is set at 1.00000.
Indicators The RSI is at 50, indicating neutrality. The ADX is rising, currently at 24.63, suggesting a strengthening trend. The Parabolic SAR indicates an uptrend, with values such as 0.99990 remaining bullish. The price is above the 50-day SMA and 200-day EMA, both around 0.99985 and 0.99986 respectively.
Market Sentiment As the market price is above the pivot point of 1.00000 and indicators suggest bullish momentum, a buying trend is favored.
The cryptocurrency market bounced 2% in the last 24 hours to $2.67 trillion. So far, the situation looks like a rebound after the collapse.
Sentiment in the crypto market has shifted from dread to fear at 34. This indicator was higher than current almost three weeks ago, indicating that now is a good time to buy.
Bitcoin still has a long way to go before it beats its January all-time high of nearly $109,000, though. It's down by nearly 24% since setting that latest milestone
Analysts are of the view that Bitcoin’s inflation-hedging ability is somewhat uncertain in developed economies but can be more effective in emerging markets.
For years, inflation was primarily a concern for emerging markets, where volatile currencies and economic instability made rising prices a persistent challenge. However, in the wake of the COVID-19 pandemic, inflation became a global issue.
Once-stable economies with historically low inflation were suddenly grappling with raging costs, prompting investors to rethink how to maintain their wealth
Unlike traditional inflation hedges such as gold, Bitcoin is still a relatively new asset. Its role as a hedge remains uncertain, especially considering that widespread adoption has only gained traction in recent years.
Despite high inflation in recent years, Bitcoin’s price has fluctuated wildly, often correlating more with risk assets like tech stocks than with traditional inflation hedges like gold.
For this reason, some analysts say that Bitcoin’s price may be driven more by investor sentiment and liquidity conditions than by macroeconomic fundamentals like inflation.
Ethereum dropped below $2,000 on March 10, and it has struggled to regain a position above the psychological level.
According to a recent Ethereum price analysis, the ETH token saw a notable decline of 27% in the last week, followed by a 9% drop in the last seven days.
Despite the current market sentiment and the performance of the Ethereum price, investors have remained optimistic regarding its future. This is primarily because of the Ethereum price analysis after the recent attack on Bybit. The exchange company suffered a devastating attack in which over 490,000 ETH worth around $1.46 billion was stolen.
However, in the last 36 hours, Bybit has acquired over $297M worth of ETH, a move that has fueled investor optimism. This investor sentiment is also reflected in the recent spike in trading volume of the ETH token. Furthermore, analysts believe the Ethereum price might surge to new heights with the current market momentum.
The Crypto Fear & Greed Index is currently at 15, placing it within the "extreme fear" position. This marks a huge drop, considering the index was 24 last week and 37 last month.
The recent drop in the index reflects widespread loss of confidence and an increase in selling pressure. For now, such low levels suggest that investors are avoiding crypto purchases in the short term.
If the index continues to decline, reaching 10 or lower, then the bearish bias in BTC price movements could intensify further.
Key Levels:
$90,000 – Main Resistance: This level, which previously acted as major support, now serves as key resistance
$84,000 – Immediate Barrier: This is currently the closest resistance level and represents a neutral zone in recent sessions.
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Network economist Timothy Peterson cautions that if the US Federal Reserve delays rate cuts in 2025, it could trigger a broader market decline, potentially pulling Bitcoin back to $70,000. This could eventually disturb the whole crypto market.
Peterson, known for his work on Bitcoin's value, used a model to estimate potential market movements. While he predicted a 33% drop in Bitcoin to $57,000, he believes historical trends indicate a floor price closer to the low $70,000 range.
Other experts have also shared varying price predictions for Bitcoin, with some foreseeing a correction to $70,000-$75,000 before a surge to $250,000 by year-end. Overall, caution and market observation are advised in the volatile crypto landscape.