The Bitcoin price dropped to its lowest level in April as financial markets reeled from a surprise tariff announcement by U.S. President Donald Trump.
The cryptocurrency fell 8% to $83,162 on April 3, while U.S. stocks recorded their worst single-day session in years.
Traders and analysts now eye $90,570 as the critical price to reclaim if Bitcoin hopes to resume its upward trend.
$1.6T Wipeout in Stocks Sends Bitcoin Price Tumbling
On April 3, the S&P 500 plunged 4.2% at the open—its largest daily decline since June 2020.
The Nasdaq Composite dropped 5.23%, while the Dow Jones Industrial Average fell 3.41%, closing at 40,785.41.
According to TradingView, Bitcoin price briefly surged to $88,580 following the tariff news but quickly reversed course.
As Trump’s measures against several trading partners hit the headlines, investor sentiment soured.
Source: The Kobeissi Letter/X
As per a pos on X by The Kobeissi Letter,
“The S&P 500 has erased nearly $3 trillion in market cap since yesterday’s high.”
CoinGecko data showed the total crypto market lost 6.8% in 24 hours. CoinGlass said over 200,000 traders were liquidated, totaling $573.4 million.
The largest single liquidation was an $11.97 million ETH/USDT position on Binance.
Bitcoin Price Must Reclaim $90,570 to Resume Bullish Structure
According to Ali Martinez, Bitcoin’s first bullish signal will be reclaiming the short-term holder realized price at $90,570.
Source: Ali Martinez/X
Until that happens, technical structures appear fragile. Rekt Capital noted that Bitcoin price was recently rejected from the Price Downtrend, although a successful RSI downtrend retest hints at possible strength.
A more cautious tone came from PostyXBT, who described the latest correction as a “stair step up then elevator down.”
Source: Merlijn The Trader/X
Meanwhile, Merlijn The Trader compared the current setup to a previous momentum reset, resulting in a +50–70% rally in weeks. But traders remained split on whether such a repeat could happen soon.
Heavy Liquidations Suggest Deeper Drop Is Possible
Bitcoin’s open interest dipped below $50 billion, reducing leverage but exposing the market to larger swings.
Joao Wedson, CEO of Alphractal, warned that heatmaps show heavy leverage around $80,000. If broken with volume, a drop to $64K–$65K may follow.
Bitcoin liquidation maps. Source: X
The Glassnode team also raised concern over a new “death cross.” The 30-day volume-weighted Bitcoin price has crossed below the 180-day, historically signaling a multi-month bearish trend.
Bitcoin realized price “death cross” impact data. Source: Glassnode/X
As per analytics firm’s report,
“An onchain analogue to the Death Cross has emerged…This pattern preceded 3–6 months of bearish trends.”
Tariffs, Job Data Stir Recession Fears
The broader macro backdrop remains uneasy. Following the tariff announcement, U.S. jobless claims came in lower than expected at 219,000, below the forecasted 228,000. The Kobeissi Letter noted,
“Markets think the Fed will be forced to cut rates as soon as next month.”
A resilient labor market, however, could justify tighter conditions longer. That risks further damage to risk assets, including cryptocurrencies.
Source: Arthur Hayes/X
Arthur Hayes echoed the macro concern but with a bullish twist: “Global imbalances will be corrected and papered over with printed money,” he wrote, calling tariffs bullish for Bitcoin price.
Some traders noted a rare trend reversal. @MaxBecauseBTC observed that Bitcoin led the latest drop, rather than lagging traditional markets.
Source: Max/X
The analyst wrote,
“It’s usually not like this…Sometimes Bitcoin leads the drop and also the recovery.”
Such behavior suggests Bitcoin may be carving a more independent path in risk-off environments, though that theory remains untested amid ongoing volatility.
Gap at $85K Adds Technical Pressure
Adding to the technical mix, Rekt Capital identified a new daily CME gap near $85,000. Since most gaps have filled historically, the likelihood of a revisit remains high.
ADA/USD 1-D price chart. Source: Rekt Capital/X
With Bitcoin price trading below $84,000, bulls face pressure from multiple fronts—macroeconomic headwinds, technical breakdowns, and elevated liquidations.
Unless bulls can reclaim $90,570, short-term optimism may give way to extended consolidation or further downside.
