Bitcoin Plummets to $74,000 in Shocking Market Crash: Is Trump’s Tariff to Blame?

Bitcoin has taken a hard hit to start the week, dropping to a four-month low of $74,000 and rattling investor confidence across the board. The sudden Bitcoin crash caught many by surprise, especially after experts had predicted more stability in the short term. But as fear swept through global markets on Monday, Bitcoin was no exception, following the broader trend in what some analysts are calling an “ugly” start to the week. With more volatility expected, the crypto community is now watching closely to see what’s next.

Global Markets in Turmoil After Trump’s Tariff Announcement

A large portion of this turmoil is due to an even more unexpected political maneuver, U.S. President Donald Trump’s Tariff announcement that led to a major sell-off in stocks and crypto. The subsequent impact was felt around the globe, as well as in stocks, with major indexes like Hong Kong’s Hang Seng taking a 10% hit, its worst single day since the financial crisis in 2008.

The Bitcoin crash happened not long after, as many see Bitcoin as an overall indicator of sentiment. Bitcoin, which is often thought of as a store of value for moments like these, failed to hold up in the economic storm. Bitcoin didn’t hold, and like in other market downturns, it fell in line with the traditional markets and pushed down overall sentiment.

Analysts Warn of More Ups and Downs Ahead

Crypto analyst Michael van de Poppe summed it up well, calling the current market mood “Black Monday.” He predicts the rollercoaster ride isn’t over yet, expecting BTC to continue testing lower levels in the next couple of weeks. Fellow analyst MMCrypto echoed the concern, warning that more pain could be coming. With the recent Bitcoin crash wiping nearly 10% off its value in a single day, and more than 13% over the past month, all eyes are on what the charts are telling us. Let’s dive into the latest technical analysis to see where Bitcoin might be headed from here.

BTC Price Analysis of April 7, 2025

A 5-minute chart of the BTC price shows a steep decline after breaking below the important support level of about $80,000. Growing volume and volatility with this breakdown heightened selling pressure. The BTC price kept declining steadily, briefly consolidating around the $78,000 region before breaking through that barrier as well.

Chart 1, Analyzed by Alokkp0608, published on April 7th, 2025.

A new support zone between $76,000 and $76,500 is currently being tested by Bitcoin, and there is some slight buying interest there. Throughout the session, the RSI continuously fell into oversold territory, indicating strong selling momentum. Although there were brief relief rallies, each bounce was stopped below the previous support-turned-resistance zones, meaning they did not result in a significant reversal. 

The MACD, which displays several death crosses that corresponded with price breakdowns, lends more credence to the negative bias. The current bearish pressure was highlighted by the brief golden crosses that did materialize but lacked follow-through. With the MACD lines flattening down a little and the RSI remaining close to 40, the previous few candlesticks indicate a decrease in downside momentum, which could indicate that sellers are losing strength. Nonetheless, prudence is still advised by the larger situation. Any recovery attempt may not last long unless the price regains levels over $78,000, as the resistance around $82,000 is still strong.  

Final Thoughts: Bitcoin Faces a Make-or-Break Moment Below $78K

Bitcoin’s significant decline of 10%, which dropped it below the $74,000 level, demonstrates a major moment for the crypto landscape as the overall drop in BTC price was triggered by macroeconomic shocks, including Trump’s tariff announcement. Although there was a temporary rally and a slight slowdown of the downward selling momentum, the outlook remains cautious.

Technical indicators, such as RSI and MACD, indicate potential, albeit limited, BTC price stabilization in the short term, while key resistance levels at $78K and $82K must be reclaimed for price recovery to show sustainability. Until then, Bitcoin remains vulnerable to further price decline. As Bitcoin continues to react to macroeconomic factors and the broader market, traders should monitor these critical resistance price levels for any potential price movement.

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