Bitcoin's Price Drops 1.8% Amid Tariff Concerns, Futures Sentiment Declines

Bitcoin's price has shown resilience, maintaining a steady trajectory from November 2024 to February 2025. During this period, the cryptocurrency surged from approximately $74,000 to a peak of $101,000. However, following the announcement of tariffs by US President Donald Trump, risk-on assets, including Bitcoin, experienced a significant pullback.

After reaching a potential local bottom of $74,508 on April 6, Bitcoin has since recovered some of its recent losses. At the time of writing, the top digital asset is trading in the mid $80,000 range. Despite this recovery, sentiment in the Bitcoin futures market has continued to decline since February. This divergence suggests increasing caution or profit-taking behavior, possibly due to macroeconomic uncertainty, regulatory concerns, or expected corrections.

The BTC Futures Sentiment Index currently hovers around 0.4, indicating a predominantly bearish sentiment across futures markets. The index shows a resistance zone around 0.8 and a support level near 0.2. This sentiment could signal extended price consolidation or even downward pressure on Bitcoin in the near term. However, any emerging bullish catalyst could quickly shift the sentiment and renew upward momentum.

Some analysts believe Bitcoin may be nearing a breakout. After consolidating in the mid-$80,000s for several weeks, on-chain metrics suggest that Bitcoin may be undervalued at current levels. Indicators such as BTC exchange reserves and the Stablecoin Supply Ratio support this view. Additionally, momentum indicators like Bitcoin’s weekly Relative Strength Index have begun to break out of a long-standing downward trendline, raising hopes for a potential bullish rally back toward $100,000.

However, several risks still remain. The recent appearance of a ‘death cross’ on Bitcoin’s price chart, combined with persistent macroeconomic concerns related to trade tariffs, could still weigh heavily on market sentiment. At press time, Bitcoin trades at $83,917, down 1.8% over the past 24 hours. The current market conditions suggest a cautious outlook, with potential for both consolidation and a bullish rally depending on future developments.