In a sudden turn of events, Bitcoin’s price has experienced a dramatic decrease, dropping from just under $83,000 to below $79,000 within a matter of hours. This notable decline has not only affected Bitcoin but has also triggered a significant spike in liquidation levels across the market, with leveraged positions worth nearly $600 million being liquidated, according to data from CoinGlass.
This downturn follows several ‘calm’ days where Bitcoin had shown resilience, outpacing major indices and reinforcing its reputation as a digital store of value. Analyst Jonatan Randing has commented on the current market situation, stating that Bitcoin appears poised to approach the Weekly 50 EMA, a historical support level during bullish trends. Randing poses a critical question: are we truly in a bull market?
Bitcoin about to hit the Weekly 50 EMA – Historically a good level of support in bull markets.
But are we in a bull market? pic.twitter.com/otbb0xUzpw
— Jonatan Randin (@JonatanRLZ) April 6, 2025
The recent volatility in Bitcoin’s price coincides with broader market tensions, particularly in light of the potential for reciprocal tariffs from the European Union, following former President Trump’s recent decision to impose a 20% levy on all EU imports. Traders are gearing up for what many anticipate to be a ‘bloody’ market open on Monday, as major indices like the S&P 500, NASDAQ 100, and DJI have reported their worst trading week since the COVID crash in 2020.
In conclusion, the current scenario in the cryptocurrency market reflects a blend of uncertainty and anticipation among traders, as they navigate through the implications of macroeconomic factors and Bitcoin’s inherent volatility.
