Bitcoin Had a Highly Volatile Session Due to Trump's Tariffs

Trump's Tariff War Sinks Bitcoin, But Buyers on the Rescue Avoid a Bigger Catastrophe

The price of Bitcoin experienced a heart-stopping day, with a sharp initial drop to $74,508 amid the widespread panic gripping global markets due to the escalation of Donald Trump's tariff war. However, the world's leading cryptocurrency managed to partially recover, closing the session with slight gains of 0.93% at $79,163, leaving a highly volatile doji candle that signals strong market indecision. The price also reached an intraday high of $81,243 following rumors, later denied by the White House, about a possible 90-day postponement of tariffs.

The Bitcoin price successfully tested horizontal support at $76,600, rebounding higher, although it remained below fixed resistance at $81,200. / TradingView

Bitcoin Yields to Global Selling Pressure

After Sunday's significant drop, Bitcoin continued its decline, breaking through the support zone at $76,600. However, the cryptocurrency found demand at lower levels, staging a notable rebound that allowed it to close the day in positive territory. Like other risk assets, Bitcoin was dragged down by the sell-off that dominated global markets, intensified by China's response with 34% tariffs on US products. The US Federal Reserve, meanwhile, remains focused on inflation as a determining factor for future interest rate cuts.

Liquidity Leak in Bitcoin Futures Persists

Open interest in Bitcoin futures continued its downward trend, falling 3.17% in the last 24 hours to $51.03 billion, the lowest level since March 19. This decline in open interest, accompanied by the price drop, suggests a reduction in liquidity in the derivatives market. However, Bitcoin managed to find support in the horizontal zone of $76,600.

Trading Volume Declines

Bitcoin trading volume reached $6.09 billion, according to data from CheckonChain, a decrease compared to the previous two trading sessions, although higher than the low of $5.39 billion recorded on March 30. In the spot market, buying volume was $2.91 billion, while selling volume stood at $3.18 billion, resulting in a negative spot CVD of $275.16 million, indicating that sellers remained in control during the session.

Doji Candle Signals Indecision

The formation of a doji candle, with a lower wick longer than the upper wick, suggests strong indecision in the market, but also evidences the intervention of buyers to prevent a steeper price decline.

Options Investors Bet on Upside

In the options market, open interest decreased slightly to $24.37 billion, with call positions representing 58.84% and put positions representing 41.16%, indicating that options investors maintain a bullish outlook for the Bitcoin price. At the same time, the price drop was taken advantage of by investors who withdrew 5,096.75 BTC from centralized exchanges in the last 24 hours, bringing the total to 27,717.53 BTC withdrawn in the last 30 days. This trend suggests long-term accumulation or a search for refuge amid global economic uncertainty.

Support at $76,600 Holds, But Bearish Sentiment Persists

The Bitcoin price successfully tested horizontal support at $76,600, rebounding higher, although it remained below fixed resistance at $81,200. The cryptocurrency continues to show bearish sentiment, trading below the 50- and 200-period exponential moving averages. However, the strength of support at $76,600 suggests a possible weakening of the downtrend. Should this key level be lost, the next support lies at $66,700.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. The cryptocurrency market is highly volatile and carries significant risks.