Bitcoin Plummets 32% Amid US-China Trade War Escalation

Bitcoin's price has experienced a significant downturn, plummeting by 32% in recent weeks. This dramatic decline has raised concerns about the cryptocurrency's ability to maintain its value, with analysts and investors closely monitoring its performance. The decline is attributed to escalating global tensions, particularly the reemergence of the trade war between the US and China. The announcement of a 50% tariff increase on Chinese goods by Donald Trump has led to a plunge in financial markets, amplifying the bearish sentiment surrounding Bitcoin.

Technical analysis reveals that Bitcoin has broken key support levels on the weekly chart. After forming a double-top at $108,520, Bitcoin broke below the neckline at $89,050, confirming the plunge. The price also fell under the 23.6% Fibonacci Retracement, with the 50-week EMA strengthening the case for a prolonged bearish sentiment. The next major target for Bitcoin is $73,550, which coincides with the handle section of the C&H pattern. If this support level is lost, the next level appears near $62,530, the 50% retracement level. A bullish reversal would only be validated if the BTC price surges past $87,000.

Moving averages show that the 50-day is trending upward but currently sits above the spot, acting as resistance. The 200-day moving average has been inclining upward since September 2024, suggesting the broader trend remains intact unless broken. The MACD histogram shows no strong divergence, reinforcing a cautious approach. The daily volatility is high, with each new geopolitical shockwave having the potential to affect the BTC price quickly. Market participants are advised to monitor global economic developments closely.

According to the analyst's forecast, Bitcoin will slowly stabilize with minimal increase on the horizon. Forecasts suggest that Bitcoin can be seen swinging around $75,259.04 on the 9th of April, followed by $75,269.10 on April 10th. The April 16 forecasted value would be $75,329.49, showing a gradual but slight gain. The predictions provide some middle ground for the Bitcoin bearish sentiment. However, the daily volatility is high, with each new geopolitical shockwave having the potential to affect the BTC price quickly. Market participants are advised to monitor global economic developments closely.

The current Bitcoin price prediction portrays a market at a critical juncture, with global tensions and technical breakdowns causing rapid fluctuations. Even if the BTC plunge shook short-term holders, the underlying long-term structure continues to provide opportunities if support levels are maintained. Due to the prevalent Bitcoin bearish trend, there is a need for traders to be cautious and monitor daily predictions. The April 2025 Bitcoin price prediction reveals a minimal positive trend, though volatility will be pushed to its limits repeatedly. As the BTC price approaches key support zones, a careful strategy could make all the difference in navigating this volatile phase.