Bitcoin's price experienced a sharp decline over the weekend, falling 7% to a 25-day low as trade tensions escalated and market liquidity waned. This drop marks BTC's first dip below the $80,000 threshold in nearly a month.
Bitcoin Breaks Below $80K Amid Rising Trade Tensions
On Sunday, April 6, 2025, Bitcoin's price plummeted to $79,000, its lowest level since March 11. The cryptocurrency showed initial resilience last week but ultimately surrendered its late-week gains as bearish sentiment took hold.
TradingView data reveals BTC traded as low as $78,964, representing a 7% decline from last week's peak of $86,000. This downturn followed China's announcement of retaliatory tariffs, which had initially driven investors toward crypto markets as a hedge against trade tensions.
$580M in Crypto Liquidations as Bears Dominate Weekend Trading
The market saw dramatic shifts following China's 34% tariff announcement. Bitcoin briefly surged above $85,000 on Thursday, lifting major altcoins like Ethereum (ETH), Solana (SOL), and Ripple (XRP) by over 5% within 24 hours.
However, as U.S. markets closed on Friday, momentum faded. Thin weekend liquidity created ideal conditions for bearish traders to take control. Within 48 hours, Bitcoin lost more than 7%, triggering widespread losses across crypto markets.
Coinglass data shows $597 million in leveraged positions were liquidated in 24 hours, affecting over 205,000 traders. Bitcoin led with $203.78 million in liquidations, followed by Ethereum at $164.72 million. Notably, $514 million of these losses came from long positions, catching bullish traders off guard.
Altcoins weren't spared either. Solana saw $29.35 million in liquidations, while XRP and Dogecoin experienced $13.65 million and $12.97 million, respectively. This mass liquidation event has significantly eroded recent gains and shaken investor confidence.
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Technical Breakdown: Bitcoin Price Eyes $76K Support Level
Bitcoin's technical outlook turned decidedly bearish after breaking below the crucial $80,700 support level. The daily candle closed with a 6.33% drop, falling below both the 50-day SMA ($84,068) and 200-day EMA ($82,828).
Key indicators suggest further downside potential:
- Volume spiked to 26.04K on April 6, confirming strong selling pressure
- MACD histogram turned deeply negative, signaling intensifying bearish momentum
- The signal line shows sharp divergence from the MACD line, historically preceding deeper retracements
While BTC remains above March's intraday low of $78,694, failure to reclaim $80,700 could see prices test $76,000 or even $72,500. The market now watches for either a recovery above broken trendlines or continuation into lower liquidity zones.
FAQs: Understanding Bitcoin's Recent Price Drop
Why did Bitcoin's price fall suddenly?
Reduced weekend liquidity and escalating trade tensions created perfect conditions for bearish momentum, triggering mass liquidations.
How much was liquidated in the crypto market?
Over $597 million in positions were liquidated within 24 hours, with $514 million coming from long positions on Bitcoin and Ethereum.
What's next for Bitcoin's price?
If BTC fails to reclaim $80,700, we could see further drops toward $76,000 or lower as bearish momentum persists.
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Key Takeaways
- Bitcoin broke below $80K for the first time in 25 days
- Weekend liquidity crunch amplified selling pressure
- Over $580M in liquidations occurred within 24 hours
- Technical breakdown suggests potential for further downside
- Market sentiment remains cautious ahead of new trading week
Note: Crypto markets are highly volatile. Always conduct thorough research before making investment decisions.