How Low Could Bitcoin Fall Amid Trump’s Tariff Shock?

A Global Sell-Off Hits Crypto

On April 7, the cryptocurrency market woke up to sharp losses, triggered by U.S. President Donald Trump's new global tariff policy. 

Bitcoin fell to $75,000 mark, sliding over 9.5% in 24 hours. Ethereum saw steeper losses, dropping nearly 15% in 24 hours. The GMCI 30 Index — a benchmark for top cryptocurrencies — plunged more than 15% in one day and has now lost over 35% since January.

These losses mirror the chaos in traditional markets. The S&P 500 and Nasdaq both closed nearly 6% lower on April 4. According to analyst Holger Zschaepitz, U.S. stocks shed $8.2 trillion in market value — worse than the worst week of the 2008 financial crisis.

The trigger? Trump's sweeping new tariffs — including a blanket 10% duty on all imports and even higher rates for goods from China (34%) and the EU (20%). The trade war narrative is back, and risk assets are bleeding.

Bitcoin in the Crossfire

Bitcoin didn’t fall alone. But unlike equities, Bitcoin has no earnings reports or central bank support to lean on. It's traded purely on market psychology, macro sentiment, and liquidity — all of which are under pressure right now.

As China announced retaliatory tariffs of 34% on Friday, CME futures opened with red candles across the board. Bitcoin dropped to around $79,000, tracking equity futures lower. Panic selling followed, driving a wave of long liquidations. In the past 24 hours, Bitcoin traders have been forced to sell over $1.15 billion in bullish positions over the last 24 hours— the biggest liquidation event since early March.

Volatility, usually Bitcoin’s playground, is suddenly missing. While the VIX (Wall Street’s volatility index) has jumped to 2020 COVID crash levels, Bitcoin’s price is showing compression. Analyst Daan Crypto Trades called the divergence "rare," and suggested that Bitcoin may be poised for a major breakout or breakdown next week.

The Bearish Technical Picture

Bitcoin's technical setup doesn’t look promising in the short term. After falling below the 200-day moving average last month, the price slipped into a rising wedge pattern — a classic setup for a bearish breakdown. That breakdown arrived in late March, confirming the bearish case.

Worse, a death cross has now appeared on Bitcoin’s daily chart — when the 50-day moving average drops below the 200-day. This pattern is widely seen as a signal for further declines.

Let’s take a closer look at potential support levels Bitcoin may test next.

Key Levels: Where Could Bitcoin Go?

According to analyst Tim Smith, here are some of the support levels:

$74,000 Support:

This level aligns with a long-term trendline that connects the March 2023 peak and the October 2023 high. It also marked the consolidation zone before the last major breakout. If Bitcoin holds here, it could bounce — but a breakdown might trigger panic.

$65,000 Zone:

Failure to hold $74K could send Bitcoin tumbling to the $65K range. This region provided strong support in August and September of last year. It’s also close to October’s bottom, before the ETF-driven rally in November. A lot of sidelined demand may reappear here.

$57,000 Floor:

If markets enter full risk-off mode, this level becomes the final line of defense. It aligns with the May 2023 low and sits just above several swing lows from the summer. Traders may look to accumulate heavily at this price.

Any recovery attempt must overcome the $87,000 resistance. This area now holds both the 50- and 200-day moving averages. It’s also a psychological level that supported price action for months until March’s breakdown.

Traders will closely watch whether Bitcoin can reclaim this region. Until then, any bounce may be seen as a short-term relief rally.

Trump’s Tariffs and the Bigger Picture

Trump’s tariffs are more than political posturing. They represent a direct threat to global trade. When goods stop flowing, economies slow. Stocks fall. Commodities drop. And high-risk assets like Bitcoin get caught in the crossfire.

The difference this time? Some still believe Bitcoin could flip the narrative.

Veteran trader Max Keiser remains bullish. He predicts a surge to $220,000 by the end of the month — not despite the market crash, but because of it. He argues that Bitcoin remains the “ultimate safe haven” in an increasingly unstable world.

That theory will be tested soon. If traditional markets face a 1987-style crash, as some fear, we’ll find out whether Bitcoin can really act as digital gold — or whether it still behaves like a tech stock on steroids.