Analysts call Bitcoin bottom as EOS defies market trend with 40% rally

Market uncertainty prevailed this week as Bitcoin failed to break $87,000 and traded close to weekly lows.

With concerns over trade wars escalating, the total crypto market capitalisation had fallen nearly 7% to $2.75 trillion by late Asian trading hours on Friday.

In line with this, the Crypto Fear and Greed Index slipped into extreme fear territory at 28, down sharply from 44 the previous week.

Trader hesitation was also evident across the altcoin market, with low trading volumes and only single-digit gains among the top 99 tokens.

Why was Bitcoin down this week?

Several macroeconomic catalysts kept Bitcoin muted

Early in the week, sentiment took a hit as traders reacted to mounting geopolitical tension. US President Donald Trump announced a fresh round of 25% tariffs on imported cars, stoking fears of a renewed trade war. 

The economic backdrop further shook investor confidence. The latest PCE report showed inflation rising faster than expected, while March data from the Conference Board revealed that US consumer confidence had slumped to its lowest level in 12 years. 

This one-two punch of inflation and weakening sentiment pushed traders to de-risk, dragging down spot demand and futures activity.

By midweek, those fears had only grown. The market was jittery ahead of the April 2 tariff rollout, which many feared would act as a bearish trigger for risk-on assets like Bitcoin. Although intended to protect US manufacturing, the proposed measures risked inflaming trade tensions.

The S&P 500 and Nasdaq Composite fell another 3.5% after the open on tariff news, with analysts dubbing the move the start of a new “World War 3” of trade wars. 

Even stronger-than-expected US jobs data failed to offset the gloom, as investors remained focused on the deteriorating macro environment. 

Still, market bets on a potential Federal Reserve rate cut continued to climb, with expectations inching higher despite the mixed signals. When writing, the CME Fed watch tool showed chances of a May rate cut at 41.3%.

Will Bitcoin crash again?

The current scenario around Bitcoin remains largely bearish. Market analyst Sergei Gorev, head of risk at bitcoin and crypto platform YouHodler, warned that a break below March’s low of $77,186 could open the door to what one described as a “crisis scenario” heading into 2025. 

The outlook for equities and crypto alike has darkened in the wake of escalating trade tensions, with sentiment weakening across the board. 

Yet, Bitcoin has continued to trade within a relatively tight range between $80,000 and $90,000.

According to XBTO’s Javier Rodriguez-Alarcon, this range could act as a trigger zone, with any decisive breakout potentially fuelling a larger move in either direction.

“With attention turning to how these reciprocal tariffs will be enforced in the coming weeks, investors should closely monitor key macroeconomic indicators and prudently manage position sizes, particularly by restricting leverage,” Rodriguez added.

Nevertheless, some remained optimistic and suggested that the benchmark cryptocurrency may have bottomed and an upward rally may be looming.

One such signal came from market analyst Cas Abbé, who pointed to a potential falling wedge pattern forming on Bitcoin’s daily chart. He noted that BTC didn’t print a new low even as traditional markets suffered their worst session in five years, which could suggest relative strength.

Abbé added that Bitcoin often bottoms before the broader market, speculating that the $76,500 level may have marked the cycle low. For further upside confirmation, he advised watching for a breakout and reclaim above the $86,500 mark.

Crypto commentator Lana Queen chimed in with a similar sentiment, noting that Bitcoin’s outperforming traditional markets was “bullish.” See below.