Bitcoin Again Faces “Death Cross”
Currently, Bitcoin has once again become a “death cross,” a chart pattern that occurs when Bitcoin’s short-term moving average (such as the 50-day) crosses below its long-term moving average (such as the 200-day). This pattern is generally regarded as a bearish signal. Most importantly, there is also an impending tariff issue that will take effect on April 2, which could impact market sentiment, including Bitcoin’s performance. However, not everyone is selling off in response to all the bad news.
Death Cross: Bearish Signal or Market Bottom Indicator?
Crypto analyst Evan Aldo explains that the death cross may not be as negative as it sounds. It could signify an imminent rebound for Bitcoin. Referring to a chart shared by Benjamin Cowen, he noted that this pattern has historically marked market bottoms, suggesting that Bitcoin may be on the verge of recovery. He believes that even under the current downward pressure, if Bitcoin’s price drops to the $77,000 to $79,000 range, it should find substantial support there.
A rebound is expected soon, and by summer, Bitcoin could reach between $119,000 and $120,000. By the end of this year, driven by strong market momentum and investor interest, Bitcoin might hit $150,000. However, a drop below $75,000 would be a dangerous signal. The greatest concern is if the price falls below $70,000, as this would represent a significant downturn compared to previous market corrections following Bitcoin’s halving events. Historically, Bitcoin has corrected by about 30-35% after such events, so anything beyond that could indicate deeper troubles.
Trump’s New Tariff Plan Shakes the Market
Following Donald Trump’s announcement of new tariffs, the market faced significant hits this Thursday, including a 25% levy on Canadian auto imports and potential tariffs on the European Union contingent on cooperation with the U.S. economy. Cryptocurrencies like Bitcoin, Ethereum (ETH), and Ripple (XRP) fell by 5%. Bitcoin is often seen as a hedge against traditional market risks, but it is not immune to sell-offs. Experts predict that tariffs aimed at boosting the U.S. economy could actually harm global markets, leading to increased volatility in traditional assets as well as digital currencies like Bitcoin.
