Bitcoin Crashes Below $78K: Why Is Bitcoin Price Going Down?

Rising worldwide tension and strong new U.S. tariffs have caused the Bitcoin price to fall below $78,000 quite sharply. This is general panic across the economy, not something unique to cryptocurrencies. Liquidations of Bitcoin are spiking, Bitcoin sentiment is fraying, and the notion of Bitcoin as a safe haven is not holding up. Bitcoin remained solid for months despite stock price fluctuations. Nevertheless, that buffer just shattered. The price slide is more about anxiety seeping through world markets, and Bitcoin isn’t immune, than it is about crypto.

Why Bitcoin Price Is Going Down

A surge of macroeconomic worry is behind Bitcoin’s most recent fall. Fears of a world trade conflict erupted once President Trump unveiled extensive new tariffs, tipping the balance. Investors reacted by leaving risky assets, and Bitcoin fell behind. Long positions totalling more than $200 million got wiped out in less than one day, demonstrating how quickly sentiment changed. Bitcoin sentiment is now deeply influenced not just by technical factors but by wider economic headlines. Bitcoin had been floating around $80,000, but ultimately, the weight of worldwide financial anxiety dragged it lower.

Bitcoin price is acting like a tech stock, sensitive to headlines, policy, and worldwide tension, rather than a hedge. This is not only about graphs or signals. It is a matter of perspective. Investors are asking how Bitcoin fits into an unstable economy. Without a clear stimulus from inside the crypto industry, as well as without any central bank pivot in view, Bitcoin is revealed. Bitcoin may have difficulty rebounding until general market conditions level off, no matter how solid the underlying looks otherwise. Let’s take a look at the Bitcoin price to see how deadly the fall is.

Bitcoin Price for April 7, 2025

Following continuous downward pressure that drove the price to test a major support zone around $76,500, Bitcoin (BTC/USDT) trades at $76,931. Previously serving as a supply zone, the chart clearly shows a rejection from the resistance band at $80,000–$80,500. Bitcoin fell steeply after several unsuccessful tries to keep above the mid-$78K mark and briefly settled around a lower support band. Just above oversold territory, the RSI is 37.68. Recent dips below 30, underpinned as oversold, caused a small bounce, indicating that temporary buyers are coming in at support. 

Chart 1: Analysed by vallijat007, published on TradingView, April 7, 2025

Still, there’s no forceful opposite bullish signal. Though still in the negative area, MACD suggests recovery since a bullish crossover is developing and the histogram’s momentum is turning upwards, therefore denoting doubt. BTC could move to lower psychological levels if it falls below $76,500. Reclaiming $78,000 would be the first sign of improvement, if not on the downside. For the time being, Bitcoin value is sensitive; hence, cautious optimism depends on sturdy support.

Short-Term BTC Price Outlook

Losing the $78,000 level keeps Bitcoin under pressure; important support now rests around $76,500. Although early indicators of momentum show some hope of a turnaround, nothing definitively suggests a reversal of direction. If buyers do not reclaim $78,000 quickly, the market may test lower levels. Before acting, traders are looking for macro signs, crypto news, and volume confirmation. Without a change in external circumstances or powerful bullish drivers, sentiment is brittle, and Bitcoin is probably going to remain range-bound or trend lower in the short run. As more crypto news headlines amplify global concerns, traders should remain alert, as Bitcoin’s future will be heavily swayed by external economic turbulence and investor mood.