Bitcoin's Wild Ride: Tariffs Spark Crypto Crash, Traders Brace for More

Bitcoin's recent price action has been a rollercoaster ride, with the cryptocurrency experiencing a significant crash to nearly $91,000 amid heavy tariffs imposed by the Trump administration. The tariffs, which targeted Canada, Mexico, and China, shocked markets and led to a devastating crash in the crypto sector, with Bitcoin and altcoins being heavily affected. As the traditional stock market prepares to open, traders are wondering if there is more downside to come for the crypto market.

The heavy dip experienced by the crypto market may not be enough to prevent further losses when the traditional market opens, as institutions and traders may take advantage of the 24/7 trading nature of crypto to sell their holdings. Analysts have pointed out that the price of Bitcoin may be drawn back down to the major ascending trendline, with a potential descent to $73,000 on the cards if it loses this support level. Additionally, the formation of a bearish M pattern on the weekly time frame could take the price back to the $73,000 level, which would be the top point of the bull flag.

Despite the recent crash, there have been signs of recovery for Bitcoin. The cryptocurrency briefly exceeded $96,000 in a temporary surge, and veteran trader Peter Brandt has expressed the opinion that even if Bitcoin were to fall below $80,000, it could still be in a bull trend. Analysts have also pointed to historical market cycles, where corrections of this magnitude have preceded new highs, reinforcing the idea that the bull run might not be over just yet.

As the crypto market continues to navigate these uncertain times, traders and investors are keeping a close eye on the price action and waiting for signs of a potential recovery. While the recent crash has been a challenging period for the crypto sector, there is still hope that the market can bounce back and continue its bullish trend.