Bitcoin price at risk of new 5-month low near $71K if tariff war and stock market tumult continues
Bitcoin () price made a swift move to $78,300 at the April 9 Wall Street open as “herd-like” price action in equities markets continued to spook risk-asset traders.
Data from and showed BTC/USD retargeting five-month lows under $75,000 before rebounding leading into the NY trading session.
A deepening US-China trade war kept stocks on their toes, having the day prior.
Highly unusual market behavior had accompanied US tariff announcements, and China’s response with reciprocal tariffs saw the S&P 500 smash records with its roundtrip from lows to highs and back.
“On a point basis, the S&P 500 just posted its largest intraday reversal in history, even larger than 2020, 2008 and 2001,” trading resource The Kobeissi Letter in ongoing market coverage on X.
“You have just witnessed history.”
S&P 500 chart. Source: The Kobeissi Letter/X
Kobeissi drew attention to volatility kicking in from the smallest of triggers, with markets particularly sensitive to statements from US President Donald Trump.
“The problem with markets right now: Both bulls AND bears feel ‘uncomfortable’ in these market conditions,” it on the day.
“Why? Because stocks can swing $5+ trillion in market cap on the basis of a single post from a single person: President Trump. This is why we are seeing ‘herd-like’ price action, where large daily gains turn into large daily losses, and vice-versa.”
Crypto Fear & Greed Index (screenshot). Source: Alternative.me
Crypto was no exception to the tug-of-war, with the dropping to its lowest levels since early March.
For Keith Alan, co-founder of trading resource Material Indicators, the status quo was unlikely to improve in the short term.
“Part of me wants to sit on my hands and wait for this shit storm to pass,” he X followers while examining order book conditions for Ether () and Solana ().
“Because I don't think it is going to pass quickly, I'm not too eager to buy, even though some of these assets are on sale at great prices. That said, the fact that bids are piling in on some assets makes them very enticing.”
Focusing on BTC price action, popular trader and analyst Rekt Capital revealed a new nearby resistance level in the form of a recent “gap” in CME Group’s Bitcoin futures.
“On the CME Futures Bitcoin chart, price broke down from its sideways range (black-black),” he alongside a chart showing the gap between $82,000 and $85,000.
“In confirming the breakdown from the range via a bearish retest, Bitcoin filled the CME Gap (red circle) in the process. That CME Gap is now a resistance.”
CME Bitcoin futures 1-week chart with gap highlighted. Source: Rekt Capital/X
Further analysis gave a new BTC price range with $71,000 as its lower boundary based on previous trading volumes.
“Bitcoin is experiencing downside continuation after upside wicking into the early March Weekly lows (red),” Rekt Capital summarized.
“Having confirmed this red level as new resistance, BTC is now dropping into the $71,000-$83,000 Volume Gap to fill this market inefficiency.”
BTC/USD 1-week chart with volume data. Source: Rekt Capital/X
As , Rekt Capital is among those seeing a potential long-term reversal point at $70,000 or .
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
