Bitcoin Drops to $81K Ahead of Trump’s Potential Trade War Update

Bitcoin shed another 1% in the last 24 hours, reaching the $81,000 level after a sustained correction over the past three days. The downturn reflects traders’ caution as the world awaits President Trump’s April 2 announcement, which could introduce new U.S. trade tariffs on a wide range of countries—or even globally.

BTC’s decline triggered a wave of selling across the crypto sector, causing global market capitalization to fall by 1.31%.

The correction began on March 28 and lasted through the weekend. In just three sessions, BTC dropped 5.5%, retreating below $87,000 and failing to break the key resistance at $89,000—a breakout many had hoped would drive the price toward $95,000.

The warning signs were there. The last upward move unfolded on shrinking volume, indicating that bullish momentum had already begun to fade.

The mood’s getting shaky. CoinMarketCap’s Fear and Greed Index just tanked by 10 points to 24—barely above full-blown panic. Traders are clearly rattled by BTC’s latest price swings.

But Bitcoin is still running the show: its dominance sits at a commanding 61.5%, while the altseason index stalls at 17. In a shaky market, digital gold is still king.

Institutional Inflows Stall Amid Bitcoin Price Weakness

Following nine days of consistent net inflows, U.S. spot Bitcoin ETFs registered a $93.2 million outflow on Friday. With BTC tumbling over the weekend, and given the delay in flow reporting, it’s possible that Monday will reflect continued selling pressure from institutions.

In addition, several ETFs have reported no net flows in recent sessions, suggesting a pause in positioning or reevaluation of short-term strategies.

Signals Crossed: Bitcoin’s Momentum Paints a Split Picture

After the storm of a steep correction, Bitcoin’s chart remains a tangle of contradictions.

Short-term signals offer hope. The 4-hour RSI shows a bullish divergence, a subtle handshake between price and momentum whispering of a potential rebound. But step back to the daily view, and the mood shifts: RSI holds stubbornly near 40, caught in the fog of indecision—a threshold neither bullish nor bearish, just unresolved.

In this limbo, the market breathes, waiting for conviction.

At present, Bitcoin is defending support between $81,000 and $82,000, though it remains capped by the 50-day moving average, which has proven to be a key resistance.

If price action slips below $80,000 and sustains there, the next downside target would likely be in the $75,000 to $76,000 range.

Conversely, a break and close above $85,000 would open the path to a recovery scenario, potentially extending toward $90,000.

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Pros Stay Calm While Retail Wavers

The split is classic—retail’s pulling back, but the pros? Some are still eyeing upside.

Veteran trader Peter Brandt sees something forming on the Bitcoin chart: a clean inverted head and shoulders. If the neckline breaks, we could be looking at a serious bounce.

Worth listening? Probably. Brandt’s nailed past BTC bottoms before—and he didn’t shy away from calling lower lows when it wasn’t popular.

Key levels at $80,000 and $85,000 are currently shaping the mid-range outlook for Bitcoin. A breakdown or breakout at either end could define the direction of the next major move.

However, April 2 is emerging as a pivotal date. The nature of the upcoming U.S. tariff announcement may serve as a macro trigger. A harsh stance could intensify the current correction, while a more moderate policy might spark a crypto rally and short-term market recovery.

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