Bitcoin begins the week against a backdrop of economic and technical uncertainties. The struggle to hold the $82,000 level puts investors on alert. Amid geopolitical tensions and concerning technical indicators, here are 5 key signals to monitor this week.
Bitcoin Faces a Bearish Technical Signal
The weekly Bitcoin chart recently displayed a "bearish engulfing" candle, indicating a potential downward reversal. This signal has left traders cautious as Bitcoin ended the week around $81,200, its lowest level in two weeks. Investors remain wary of compression between the 50-day and 50-week exponential moving averages, which typically precede explosive movements.
US Trade Tensions: A New Turn on April 2
On Tuesday, April 2, the US may introduce a new wave of tariff increases, dubbed as "Liberation Day" by President Donald Trump. This move could affect up to $1.5 trillion in imports, creating a shockwave for risk assets including Bitcoin. Additionally, scheduled economic releases and speeches from FED officials could influence market perception as well.
A Disappointing First Quarter for Bitcoin
With a 12.7% decline for the quarter, Bitcoin records its worst first quarter since 2018. The drop exceeds 30% from January's peak, though some analysts note this correction is still modest compared to previous cycles.
This week could be pivotal for Bitcoin with the $80,000 mark remaining a psychological level to watch. Amid trade tensions, ambiguous technical signals, and macroeconomic expectations, investors are urged to proceed with caution.
