Bitcoin experienced bearish momentum in the last 24 hours, dropping around 5% and currently trading at $79,551 on April 6. This decline came after a series of intraday pullbacks, prompting many to ask why is Bitcoin dropping despite strong long-term fundamentals. In the short term, the overall price trend has become a little bit bearish, however the broad view is cautiously optimistic as the whales continue to accumulate.
According to data from Coinmarketcap, the current BTC market cap is around $1.57 trillion, and it now has a 24-hour trading volume of $24.42 billion. Bitcoin slipped by 0.93% over the last seven days. The potential short-selling is evident by increased exchange inflows, although it is somewhat canceled out by grow whale activity on-chain.
BTC Technical Outlook
From a technical perspective, Bitcoin has immediate resistance coming in at $82,000, then we have the critical level at roughly $85,000. However, the downside will lend strong support at $76,000 and, indeed, at $73,800. The Relative Strength Index (RSI) is now approaching oversold territory, while the currently lower price rests below the 200-day moving average, which is a bearish signal. The bearish stance gets support from the MACD indicator as over the MACD line price. Additionally, the volume during the selloff increase shows strong momentum behind the recent correction.
Platforms like Santiment and Coinglass show that exchange reserves have spiked, meaning more BTC is moving on to exchanges, which is usually a prelude to greater selling. However, rather than this, there are 48 new addresses containing greater than 100 BTC assisting the fact that a large number of holders are long-term confident.
The bullish case of Bitcoin moving forward is contingent upon its being able to clear $76,000 as support and continue to locate increased whale accumulation. However, it is possible to recover towards $82,000 or even $85,000 if so. However, if Bitcoin cannot retain above $76,000, the next support is at $73,800 or lower if exchange inflows continue. It may be sensible for long-term investors to hang on to their positions as fundamentals remain strong in the overall picture. Still, short term traders need to be careful and study the technicals in addition to the support zones. Markets will be more volatile in the near term, with such things as increased economic setting, like possible U.S. tariff changes that will begin to have an impact on market sentiment.
Could BTC Reach $220,000?
Regarding its short term performance, some bold predictions have been mentioned in recent discussions. Bitfinex tweeted out an eye catching forecast from a well known (and usually controversial) figure in the Bitcoin community Max Keiser who thinks BTC/USD will rise to an impressive $220,000 by the end of the month.
While Keiser is one to take stock in the unusual, he believes Bitcoin could benefit from a market downturn that resembles the 1987 crash, bringing it to this level. According to him, Bitcoin will be pushed to $220,000 this month as trillions of dollars of wealth set to be looking for the ultimate haven.
This bold prediction has encouraged an outraged debate amongst cryptocurrency communities, with half believing it and the other half arguing that no such significant price swings can happen quickly in the short term.
Trump’s Tariff Comments Trigger $8.2 Trillion Loss in Market Value
The S&P 500 and Nasdaq Composite Index both tumbled almost 6% by the closing bell on Thursday, followed by the markets, including U.S. equities, where the loss was particularly significant.
Comments from former US President Donald Trump on new tariffs wiped away $8.2 trillion in market value, killing off the sharpest losses in years and more than the worst weekly losses of the 2008 financial crisis. The staggering impact was highlighted by financial analyst Holger Zschaepitz in a post on X (formerly Twitter), and it also raised broader concerns in global markets, with some speculating why is Bitcoin dropping amid such widespread risk-off sentiment.
One day after surging 2,000 points on Tuesday, the market abruptly declined on Wednesday leading to fears of what may lie ahead this week as some observers compare it to 1987 ‘Black Monday’ crash.
CNBC’s Mad Money host Jim Cramer said on X that it’s difficult to build a ‘new, weaker, world order on the fly amid nervous investor activity going into the weekend.
