Bitcoin Drops 10% On Black Monday Due To Trump's Trade War

Bitcoin has fallen sharply by more than 10% today following the volatility of the global market, caused by the ongoing trade war initiated by President Trump’s administration against two dozen countries. While the U.S. stock market plummeted at the close of last week, the Asian market started Monday’s trading session with a bloodbath, with Japan’s Nikkei 225 index falling 8% and China’s Hang Seng index plummeting 13% at the open. The cryptocurrency market has also endured severe reactions, with Bitcoin and all major cryptocurrencies experiencing extreme volatility in the past 24 hours. Bitcoin began to show increasing selling pressure as it fell from $83,400 to a low of $74,800 a few hours later, coinciding with a sharp decline in Asian markets. Because Bitcoin is known for its volatility and significant price fluctuations, its price is affected by every major event in geopolitics and the global trade market, as it is currently caught up in the trade war. This 10% fall illustrates why it is a risky asset and how unpredictable its price volatility can be. At the time of writing, the price of Bitcoin is trading at $74,739 – a fall of 10.15% in the past 24 hours. The trading volume in the past 24 hours is $53.92 billion, significantly up by 283% today.

With this fall, Bitcoin has loosened its important support level near the $81,000 range, where a recovery was expected, but currently, it is no longer there. Currently, the price of Bitcoin is approaching $73,800, where there is significant support before falling into a range similar to the pre-election period in the United States.

Bitcoin on Death Cross; Is this the bottom? As Bitcoin continues to fall, some analysts are applying their theories to reality with the expectation that the trend will shift to a bearish one in the long term. A famous cryptocurrency analyst and trader, HoneyXBT presents his technical analysis and emphasizes the “death cross” on the 10-day chart. A death cross is a trading pattern that occurs when the short-term moving average (, which could be the 50-day moving average ), crosses below the long-term moving average (, which could be the 200-day moving average ), often signaling a bearish trend and the potential for prices to continue falling.

Although the price seems to be trending down further, Honey’s analysis also marks the note “bottom”, indicating that a reversal could occur as a similar scenario took place in August 2024. Although the hype surrounding the elections in the United States supported the upward trend at that time, the market currently lacks any significant events that could draw major attention back to the upward trend of Bitcoin. Currently, the US stock market is about to open for the weekly trading session, which will be closely monitored by all market participants, and if there are bullish signals, the price of Bitcoin is expected to have a strong recovery and potentially hit the bottom before a new bullish trend.