Nasdaq Drops 10% as Trump Tariffs Spark Market Panic, Bitcoin Slips Below $82,000

The Nasdaq Composite is poised for its most significant one-day percentage decline since March 2020, following a tumultuous period sparked by the U.S. President Donald Trump’s tariff announcements. The market turmoil has sent shockwaves through both stock and crypto traders, with Bitcoin slipping below the $82,000 support level. The Fear & Greed Index has plummeted to 25, indicating "Extreme Fear" among traders, reflecting the heightened uncertainty in the market.

Bitcoin's price dropped to a low of $81,211 before rebounding above the $82,000 support. Historically, Bitcoin has recovered from similar crashes, with institutional investors continuing to pour capital into the cryptocurrency. Whale accumulation, where large holders of Bitcoin add to their holdings, is typically seen as a bullish sign. However, Bitcoin's price action remains rangebound, defying the usual trends associated with whale accumulation.

Despite the market volatility, derivatives traders are betting on an increase in Bitcoin prices. Data from Coinglass shows that traders are opening long positions, expecting a gain in BTC. The long/short ratio on major exchanges like Binance and OKX exceeds 1, and options volume has climbed significantly. This suggests that traders are optimistic about Bitcoin's potential to recover from the current downturn.

Experts have weighed in on the potential impact of Trump's tariffs on the cryptocurrency market. Maksym Sakharov, Co-Founder and Board Member of WeFi, noted that while the tariffs are seen as a negotiation strategy, the market remains uncertain due to inflationary pressures and fiscal debates in Washington. Sergei Gorev, Head of Risk at YouHodler, highlighted the bearish scenario for American stock markets and the potential risks for crypto traders if the decline in American indices continues.

Bitcoin's price forecast remains uncertain, with technical indicators suggesting further correction. The Relative Strength Index (RSI) reads 43, below the neutral level, and the Moving Average Convergence Divergence (MACD) shows bearish momentum. Bitcoin could test support at $82,273, and a daily candlestick close under this level could signal the beginning of a downward trend. However, if there is sustained upward momentum, Bitcoin could test resistance at $85,519, marking nearly a 4% gain from the current level. The next key resistance levels are $90,000 and the 50% Fibonacci retracement at $93,172.