Bitcoin Plummets 10% to $74,000 as Trump Tariffs Spark Market Turmoil
2min read Bitcoin experienced a significant drop to $74,000, marking a four-month low and causing widespread concern among investors. This sudden crash defied expert predictions of short-term stability, contributing to a broader market turmoil that affected various asset classes. The crypto community is now closely monitoring the situation, anticipating further volatility.
The market turmoil was largely triggered by U.S. President Donald Trump’s announcement of new tariffs, which led to a major sell-off in both stocks and cryptocurrencies. The impact was felt globally, with major indexes experiencing significant declines. Bitcoin, often seen as a store of value during economic uncertainty, failed to hold its ground and instead followed the broader market trend, exacerbating the overall negative sentiment.
Analysts have warned of continued volatility in the coming weeks. Michael van de Poppe described the current market mood as “Black Monday,” predicting that Bitcoin could test even lower levels. MMCrypto echoed this sentiment, cautioning that more market pain could be on the horizon. The recent crash has wiped out nearly 10% of Bitcoin’s value in a single day and over 13% in the past month, leaving investors on edge.
A technical analysis of Bitcoin’s price movement on April 7, 2025, revealed a steep decline after breaking below the crucial support level of $80,000. The breakdown was accompanied by increased volume and volatility, heightening selling pressure. The price continued to decline, briefly consolidating around $78,000 before breaking through that level as well. Bitcoin is now testing a new support zone between $76,000 and $76,500, with some buying interest emerging in this range.
The Relative Strength Index (RSI) has continuously fallen into oversold territory, indicating strong selling momentum. Brief relief rallies have been observed, but each bounce has been stopped below previous support-turned-resistance zones, failing to result in a significant reversal. The Moving Average Convergence Divergence (MACD) has shown several death crosses corresponding with price breakdowns, reinforcing the negative bias. However, the recent flattening of the MACD lines and the RSI remaining close to 40 suggest a decrease in downside momentum, indicating that sellers may be losing strength.
Despite these signs, the overall situation remains cautious. Any recovery attempt may not last long unless the price regains levels above $78,000, as the resistance around $82,000 is still strong. The significant decline of 10%, dropping Bitcoin below $74,000, highlights a critical moment for the crypto landscape. The overall drop in BTC price was triggered by macroeconomic shocks, including Trump’s tariff announcement. While there was a temporary rally and a slight slowdown in the downward selling momentum, the outlook remains cautious.
Technical indicators suggest potential, albeit limited, price stabilization in the short term. However, key resistance levels at $78,000 and $82,000 must be reclaimed for price recovery to show sustainability. Until then, Bitcoin remains vulnerable to further price declines. As Bitcoin continues to react to macroeconomic factors and the broader market, traders should closely monitor these critical resistance levels for any potential price movements.
