Bitcoin price dropped sharply over the weekend, declining 7% to a 25-day low amid rising trade tensions and fading market liquidity.

Bitcoin trades $80,000 first time in 25-days as Trade Tensions worsen

Bitcoin price fell sharply over the weekend, declining 7% to hit a 25-day low of $79,000 on Sunday, April 6. This marks the first time BTC has traded below the $80,000 level in 25 days dating back March 11,

Bitcoin Price Action, April 6, 2025 | CoinMarketCap

After showing initial resilience last week, BTC has now surrendered gains made in late week

Amid escalating global trade tensions, bearish sentiment caught up with Bitcoin (BTC) markets over the weekend. TradingView data shows that BTC price traded as low as $78,964 according to CoinMarketCap, marking 7% losses from last week’s peak of $86,000 recorded when China’s reciprocal tariffs prompted investors to rotate capital into crypto markets on Thursday.

Crypto market liquidations cross $580M as bears exploit slow weekend demand

After China’s initially announced retaliatory 34% tariff on US imports, Bitcoin surged above $85,000 on  Thursday, briefly lifting prominent altcoins like Ripple (XRP), Solana (SOL), and Ethereum (ETH) to gains exceeding 5% in 24 hours.

This spike hinted at a temporary decoupling of crypto from the broader U.S. stock market, as risk-averse investors rotated capital into cryptocurrencies to hedge against escalating trade tensions.

However, as U.S. markets closed on Friday, the momentum faded. Liquidity dried up across major exchanges, creating an opening for bearish traders to seize control.

Within 48 hours, Bitcoin shed more than 7%, triggering cascading losses across the crypto landscape. The sudden shift highlights how thin weekend trading volumes can leave markets vulnerable to aggressive short-side pressure.

Validating this stance, derivatives data at press time on April 6, shows that crypto traders have racked up considerable liquidation losses in the last 24 hours,

Crypto Market Liquidations, April 6 | Source: Coinglass

According to Coinglass data, over $597 million in leveraged positions were liquidated in the past 24 hours alone—affecting more than 205,000 traders. Bitcoin led the wipeout with $203.78 million in liquidations, followed by Ethereum at $164.72 million.

Notably, the majority of these losses—$514 million—came from long positions, suggesting that bullish traders were caught off guard by the sharp BTC price reversal. 

Beyond that, the liquidation heatmap shows how altcoins such as Solana ($29.35M), XRP ($13.65M), and Dogecoin ($12.97M) were also heavily affected, as panic spilled over from Bitcoin’s price correction to 25-day lows. 

This sweeping liquidation event has not only erased a large portion of the recent gains but has also shaken investor confidence ahead of the new trading week.

Bitcoin Price Forecast: BTC Eyes $76K as Bears Break Technical Support

Bitcoin price forecast remains tilted to the downside after BTC decisively broke below key support near $80,700, marked by the VWAP.

The daily candle posted a 6.33% drop, closing below the 50-day SMA ($84,068) and 200-day EMA ($82,828), both of which acted as prior support zones.

This signals a structural breakdown, with bearish momentum accelerating as weekend volatility triggered liquidations across $597 million in positions.

Bitcoin Price Forecast

Volume spiked to 26.04K on April 6, confirming strong sell-side conviction. Meanwhile, the MACD histogram has turned deeply negative, with the signal line sharply diverging from the MACD line—both indicating an intensifying bearish crossover. This pattern has historically preceded deeper retracements, especially when volume confirms directional bias, as it does here.

Despite this, bulls may argue that BTC remains in a long-term uptrend and sits just above March’s intraday low of $78,694.

A sustained defence of this zone could invite dip-buying, especially if macro sentiment improves post-Monday’s market open. However, should BTC fail to reclaim $80,700 swiftly, downside risk toward $76,000 and potentially $72,500 remains firmly in play.

Bitcoin price forecast now hinges on whether bulls can reclaim broken trend lines or risk deeper correction into lower liquidity zones.

The post Bitcoin Price Forecast: Crypto Liquidations hit $600M as BTC Plunges Below $80K First Time in 25-Days appeared first on CoinGape.

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Filed under: News - @ April 6, 2025 8:36 pm