SteemitCryptoAcademy-Bitcoin and Crypto Markets Analysis - April 8, 2025- A Fragile Recovery Under the Shadow of Trade Tensions
Hello steemians,
This Tuesday, the cryptocurrency market seems to be beginning a recovery movement, led by Bitcoin, which is seeing its price gradually recover, temporarily crossing the symbolic threshold of $80,000, before stabilizing slightly below. This upward dynamic, although moderate, comes in a context where investors are adopting a "buy the dip" strategy, that is to say buying on the dip, taking advantage of recent market declines to strengthen their positions, despite a climate of uncertainty continuing to weigh on global financial markets.
The momentum observed on Bitcoin is part of a broader trend of recovery in risk assets, correlated with the temporary improvement in sentiment on traditional stock markets, in fact, the main global financial centers, notably Wall Street indices, recorded a clear reduction in their losses at the start of the week, while Asian markets opened in positive territory, thus providing technical support to digital assets, often sensitive to the overall appetite for risk.
However, this improvement remains fragile, in particular due to the resurgence of trade tensions between the United States and several major world economies, exacerbated by the recent decisions of President Donald Trump, the latter in fact announced new rounds of customs duties, more severe than expected, and threatened to overtax strategic sectors such as imports of medicines or technological components, which fuels uncertainty and increases volatility on all markets.
In this context, although Bitcoin recorded an increase of 3.6% to reach $79,673 at 6:19 a.m. (GMT time), it should be remembered that the cryptocurrency had experienced, over the previous two days, a cumulative decline of 4.2%, reaching its lowest level in the last five months on Monday. This downward movement was accompanied by a notable reduction in investors' exposure to speculative assets, which underlines the caution still required.
Furthermore, from a technical point of view, Bitcoin recently confirmed the formation of a "death cross", a bearish signal well known to chart analysts, this phenomenon occurs when the short-term moving average (generally the 50-day moving average) crosses below the longer-term moving average (often the 200-day one), which reflects a deterioration of the bullish dynamic and reinforces the prospects of further short-term weakening, this chart configuration adds to suspicious movements observed on exchange platforms, where we note an increase in transfers of Bitcoins from long-term wallets to exchanges, suggesting a wave of potential sales.
This caution is not exclusive to Bitcoin: the entire cryptocurrency market remains marked by high volatility, despite everything, certain altcoins are also benefiting from the renewed optimism, Ethereum (ETH), second cryptocurrency in terms of capitalization, increased by almost 3%, returning to 1,585 dollars after having touched its lowest level in two years, other major assets such as XRP, Solana, Cardano and Polygon experienced increases including between 7% and 9%, showing that the recovery momentum is relatively widespread, even if it remains to be confirmed in the coming sessions.
Finally, “memecoins,” known for their extreme volatility and reliance on speculative moves, also rebounded, with a 6.8% gain for Dogecoin, while the $TRUMP token recovered slightly after flirting with its all-time lows.
Thus, although the market is showing timid signs of recovery, driven by opportunistic purchases and a technical recovery of stock indices, the macroeconomic and geopolitical fundamentals remain worrying, the imminent entry into force of the new customs barriers decreed by the American administration could reignite tensions and fuel a new wave of risk aversion, which would constrain the progression of the crypto market in the short term, in this uncertain climate, caution therefore remains in order for investors.
Warm regards,
@kouba01 (Steem Representative)
