Bitcoin’s price has undergone a sharp reversal this week, erasing earlier gains and raising concerns about a potential continuation of the downtrend.
After reaching a nine-day high of $88,600, Bitcoin fell over 6% to $82,200 following US President Donald Trump‘s confirmation of new trade tariffs on April 2.
On Thursday, April 3, Bitcoin showed signs of recovery, rising 1.74% in Asian trading and reaching $83,500 in European trading. However, sentiment remains cautious as the price remains well below its recent highs. The Bitcoin Fear & Greed Index is now at 44, reflecting a market sentiment of fear, although it is approaching neutral territory. This suggests that investors are hesitant but not overly bearish.
Bitcoin’s RSI at 46 indicates bearish momentum as the price is unable to sustain recent highs.
From a technical perspective, Bitcoin‘s 4-hour Relative Strength Index (RSI) has slipped into bearish territory following yesterday’s sharp decline. The RSI is now at 46, just below the neutral level of 50, suggesting that further downside is possible. If the price continues its downtrend, Bitcoin could test the double bottom support at $81,200, a critical level that could determine whether further selling pressure emerges.
On the upside, a sustained recovery could see Bitcoin challenge the broader downtrend line at $86,600. A break above this level would be crucial for restoring bullish confidence and could pave the way for another attempt at the resistance at $88,600. However, until Bitcoin overcomes key resistance zones, traders are likely to remain cautious, especially given the ongoing macroeconomic uncertainties affecting sentiment.
Overall, Bitcoin‘s short-term outlook depends on whether the price can maintain its recovery momentum or whether bearish pressure pushes prices toward key support levels. Investors will closely monitor upcoming economic developments and sentiment indicators to gauge the next directional shift.
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