BTC Recovers to $79K After Fake Tariff Reprieve Sparks Relief Rally

After tanking to $74,500, Bitcoin made a swift 2.44% comeback, now holding just below $80K. What sparked the whiplash? Tariff panic, ETF sell-offs—and one fake news flash that made traders believe tariffs might be delayed.

That rumor alone added $2 trillion to stocks and gave crypto a jolt. But the question now: was that bounce real, or just another head fake?

Bitcoin shot back to $80K on the rumor—but when the news was debunked, the gains evaporated just as fast. Buyers tried to push again, but resistance held firm.

Crypto loves its triple taps. Markets tend to test key levels at least three times before either breaking through or flipping trend—and we’ve only seen two.

Liquidation stats back this up: $459M wiped in a day, with $280M from shorts. Another run feels inevitable.

• Fear & Greed still screams “Extreme Fear” at 19—even with BTC climbing.
• BTC dominance hit 62.7%, as ETH slips under 7.5%.
• Altseason Index: just 17. Translation? This is still Bitcoin’s game. Don’t bet on alts taking off yet.

Big Players Keep Selling BTC ETFs

Large investors are continuing to exit U.S. spot Bitcoin ETFs. On April 7, net outflows totaled $103.9 million, with Grayscale Bitcoin Trust (GBTC) alone accounting for $74 million in outflows.

In just a week, over $350 million has been withdrawn across all ETFs, shrinking the sector’s total capitalization to $90 billion. For now, institutional sentiment remains cautious.

Bitcoin Faces Critical Technical Test

Investor and market analyst Ted Pillows says Bitcoin is hovering at a decisive point. To avoid a deeper correction, it must reclaim its 50-week EMA—an essential indicator of long-term strength.

Should it fail, Pillows projects a fallback to $70,000, with a deeper retracement possibly reaching $67,000, a level last seen during the earlier phase of the current macro cycle.

Beyond the moving average tension, Bitcoin now faces a more structural threat—a diagonal support line that’s held since the beginning of 2023 is under pressure. Should price break and hold below it, the implications could be bearish on a broader time horizon.

Simultaneously, Bitcoin’s weekly RSI is at its lowest since 2023, often a historical precursor to market turning points. And volume tells its own story: Binance registered $54 billion in trades in the past 24 hours—nearly double the average of the past month.

The combined data suggest potential accumulation and raise the possibility that we are nearing a local price floor.

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The view is echoed by anonymous crypto trader and investor Rekt Capital, who suggests that any drop toward $70,000 is likely to mark the bottom of the current correction. His conclusion draws on historical daily RSI behavior in past Bitcoin market cycles.

Fed Policy Looms Over BTC Recovery

Analysts at Ecoinometrics caution that even if Bitcoin avoids deeper losses, its rebound may still be limited. They point to the NASDAQ 100’s recent drop below its long-term annual average return—a historical pattern that often stalls BTC rallies or sets the stage for deeper corrections.

Analysts maintain that a meaningful shift in trajectory would require Federal Reserve intervention—either through interest rate reductions or a full stop to quantitative tightening. Ideally, the central bank could resume quantitative easing, reintroducing liquidity into the system by buying assets directly off the market.

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Meanwhile, Michael van de Poppe, founder of MN Capital, took a more optimistic stance during Cointelegraph’s LONGITUDE conference in Paris. He argued that historically, disorderly selloffs have often signaled macro reversals, referencing the COVID-19-induced crash in 2020 as a textbook example of a panic event that ultimately marked a global bottom.

That was the actual bottom, and since then, Bitcoin went 20x,

van de Poppe stated

Notably, that rally was fueled by swift monetary intervention from the Federal Reserve. In contrast, the current environment—characterized by persistent inflation and more than $7 trillion in equity market losses—gives the Fed limited room to maneuver.

Consequently, Bitcoin remains highly sensitive to macroeconomic policy. Traders and investors are closely monitoring the $75,000 and $80,000 thresholds as pivotal support levels.