Bitcoin Surges Past $80K Amid US Stock Market Recovery and Tariff Negotiations
Bitcoin’s price rose above $80,000 as US stocks rebounded from losses amid tariff negotiation news. The S&P 500 and Nasdaq avoided a major downturn, with tariff discussions affecting market stability. Support levels for Bitcoin are forming around $74,000 and $69,000, indicating a reliable base for future activity.
On April 7, Bitcoin’s price rallied to surpass $80,000 as US stocks recovered from significant losses. Data from Cointelegraph Markets Pro and TradingView highlighted the $80,000 level as a pivotal point for BTC/USD, which had recently reached five-month lows despite overall negative market conditions.
The negative impact of US trade tariffs reverberated across global markets, particularly affecting Asia stocks. However, news of a potential 90-day delay in the tariffs, amidst negotiations with over 50 US trading partners, alleviated some market pressures. This contributed to a recovery in both the S&P 500 and Nasdaq Composite Index, preventing a collapse reminiscent of the 1987 ‘Black Monday’.
The Kobeissi Letter noted that Nasdaq futures experienced a significant drop of nearly 7% at their lowest point, while the S&P 500 fell over 20% from February’s all-time highs, indicating a shift into bear market territory. Trading firm QCP Capital described the global tariff discussions as “remarkable” but cautioned that ongoing uncertainty may keep markets volatile.
The current administration has expressed a firm stance on economic measures, with the president acknowledging the need for difficult decisions to maintain market confidence. Meanwhile, expectations regarding the Federal Reserve’s interest rate adjustments have been fluctuating, with significant focus on the upcoming June meeting.
In the BTC market, attempts to establish a firm support level in the mid-$70,000 range have emerged following near-historic highs from March 2024. Onchain analytics firm Glassnode indicated support for Bitcoin at $74,000, coinciding with a major supply cluster. They further reported that significant amounts of BTC remain held by investors without activity since early March 2024.
Glassnode identified a substantial BTC support structure between current price levels and $70,000, including the major cluster at $71,600. The area around $69,000 also appears to be a reliable support zone for Bitcoin, which is statistically unlikely to break down under current conditions.
Investing involves considerable risk, and readers are encouraged to conduct their own thorough research before making financial decisions.
In summary, Bitcoin’s resurgence above $80,000 coincides with a broader recovery in US stocks after a potential ‘Black Monday’ was averted. Tariff negotiations and the complex economic landscape are driving market dynamics, while Bitcoin seeks support in the mid-$70,000s. Observations indicate that the $69,000 range remains an essential long-term support level for BTC. Investors should exercise caution and perform due diligence as market conditions evolve.
Original Source: cointelegraph.com
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