Bitcoin Crashes 4% After The Trump Tariff Bombshell – Can BTC Hold Above $80K?

Bitcoin was adversely affected by President Trump tariff announcement, which sent ripples through worldwide markets. The leading cryptocurrency Bitcoin crashed nearly 4% to just below $82,000 before finding its footing, with Ethereum and XRP following the same pattern. As a whole, in a risk-off environment, nervous investors flocked to traditional safe-havens, with gold leading the way and rising to just shy of $3,160 an ounce, the highest price ever. The rapid decline of Bitcoin and other cryptocurrencies unmasked how shaky they are during periods of economic uncertainty, and in the meantime, put in question their safe-haven status as a store of value in the digital asset space.

Market Jitters as Traders React To The Trump Tariffs

The Trump tariff announcement of a 10% minimum on U.S. imports, topped off with steeper tariffs on China, the EU, and Japan, sounded the alarm bells in the financial markets. At first, Bitcoin remained steady, but selling pressure mounted as traders in Asia woke up to the news. Analysts have reported that, though they regard Bitcoin as a digital currency, Bitcoin has a tendency to follow other more traditional risk assets, like stocks, and the S&P 500 was down sharply, adding to the bearish tone. Uncertainty has returned with a vengeance, and traders are reacting.

Bitcoin’s Identity Crisis: Risk Asset or Safe Haven?

The volatility associated with Bitcoin has once again stirred the debate regarding Bitcoin as a risk asset or store of value. While Bitcoin was sliding down, we saw gold soaring, which clearly indicates the divergence. Additionally, one cannot overlook the uncertainty surrounding the Trump tariff announcement, which may be one of the additional factors influencing Bitcoin’s so-called “digital gold” narrative. The key question, now with Bitcoin just under $80,000, is whether Bitcoin can hold support or whether it will further decline. As we follow price action in the market, policy changes, trader sentiment, or broad market factors such as tariff announcements may control Bitcoin’s direction, all the while the last price action offers us some clues about that direction.

Price Analysis and BTC Price Prediction

Bitcoin’s price movement on the 5-minute chart exhibited high volatility, initially trading within a moderate downward-sloping channel before starting an upward path. The price surged toward a resistance zone near $87,200, breaking the level briefly before meeting strong selling pressure, leading to a sharp decline. The breakdown from the support level around $84,350 accelerated selling, dragging Bitcoin toward a lower new key support at $82,300. The Relative Strength Index (RSI) signaled multiple overbought conditions before the downturn, confirming weakening momentum. 

Chart 1, Analyzed by Alokkp0608, published on April 3rd, 2025.

Additionally, MACD crossovers provided key signals, with death crosses aligning with bearish reversals and golden crosses indicating temporary recoveries. After testing the lower support, Bitcoin stabilized around $83,360, forming a consolidation phase. The RSI is showing neutral readings, while the MACD shows some bearish tendencies, providing more evidence that traders are still cautious overall. In addition, a prior breakout was not able to hold above the key resistance level, leading to a temporary bearish sentiment. Still, price action suggests that any potential recovery (that is technically possible) will need to take back the $84,000 level for traders to consider a bullish bias again.

Bitcoin at a Crossroads: Will $80K Hold or Break?

A recent 4% Bitcoin crash following the announcement of Trump tariffs, has once again sparked concerns if Bitcoin is a safe-haven asset. While gold reached all-time highs, Bitcoin behaved more like an asset at risk in a time of uncertainty. The price was rejected violently from levels approaching $87,200, and subsequently failed to hold the $84,350 level in support, all while price coming under pressure.

Technically, signals of RSI and MACD confirm hesitation on the outlook, while Bitcoin price continues to consolidate for the time being, coming in around $83,360. Moving forward, the $80,000 support might become significant; if the support holds, the price could rise. But if it fails to hold the price, we could see a further decline. The BTC price prediction indicates that traders should monitor confirmation from signals like MACD and RSI to ascertain the subsequent course of action.