FameEX Hot Topics | Could Bitcoin Tank Even More?

Bitcoin plunged to a four-month low of $74,500 on April 7, triggered by a surge in global market volatility. The sharp decline came as investors reacted to former U.S. President Donald Trump’s renewed commitment to impose sweeping global tariffs. His statement over the weekend rattled financial markets, leading to a massive $9.5 trillion selloff in equities worldwide. Risk assets, including cryptocurrencies, were hit particularly hard as traders moved into safer positions.

Mounting fears of a potential U.S. recession have only added to the market’s nervousness. As the economic outlook grows more uncertain, traders are offloading high-risk assets, placing additional pressure on Bitcoin. Currently, Bitcoin is testing a key technical level—the 50-week exponential moving average (EMA), which sits near $77,500. Historically, this EMA has served as a pivot between bull and bear markets, making it a crucial line to watch.

According to analyst Ted Pillows and others, Bitcoin must reclaim the 50-week EMA to avoid further losses. Failure to do so could result in a move down toward the $69,000–$70,000 range—levels that mark the highs of the 2021 cycle. Even deeper losses could bring BTC to $67,000, the average purchase price of Strategy's Michael Saylor, a psychologically important level for many market participants.

Despite the downward momentum, some indicators point to potential support. Glassnode data shows that roughly 50,000 BTC are clustered around $74,000, a region where holders have shown resilience by not moving their coins since March 10. This suggests strong conviction. In total, about 175,000 BTC are concentrated between $74,000 and $70,000, forming a solid base of support.

However, if this support breaks and the EMA fails to hold, the next potential floor could lie near $50,000. This level coincides with the 200-week EMA, which historically has acted as a long-term bottom during major corrections in Bitcoin's price cycles.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.