Bitcoin (BTC) is under heavy pressure once again, dropping toward $80,000 after failing to hold early April gains. The price dip comes as U.S. stocks mirror their worst single-day performance since the 2020 COVID-19 pandemic crash, and BTC prints a bearish “death cross” signal on-chain.BTC Slides as Risk Sentiment CrumblesData from Cointelegraph Markets Pro and TradingView shows BTC/USD dipping below $82,000 during the April 3 Wall Street open — its lowest level this month. This comes after an early-week rally that pushed Bitcoin to $88,580 following the U.S. announcement of sweeping reciprocal trade tariffs.However, the rally quickly lost steam as investors absorbed the impact of aggressive tariff measures. The broader markets followed suit: the S&P 500 plunged 4%, wiping out nearly $3 trillion in market cap, according to The Kobeissi Letter.“Today's -3.7% drop puts the S&P 500 on track for its largest daily decline since the 2020 pandemic lockdowns,” the firm noted.Adding fuel to the fire, U.S. initial jobless claims came in stronger than expected at 219,000, suggesting a resilient labor market. This undermines hopes for imminent rate cuts and increases pressure on risk assets like crypto.Death Cross Emerges as Bearish Momentum BuildsAccording to on-chain analytics firm Glassnode, Bitcoin just flashed a mid-term “death cross” pattern — the 30-day volume-weighted average price (VWAP) fell below the 180-day VWAP, historically a signal for 3–6 months of bearish trends.“An on-chain analogue to the Death Cross has emerged... signaling weakening momentum,” Glassnode posted on X.At the same time, traders noted a surge in short positions across crypto markets. Popular analyst Byzantine General suggested BTC may attempt a “stop hunt” below local lows before bouncing slightly, but warned that tariff retaliation and weak macro sentiment may limit any upside.“I do think that with the tariff responses that are most likely coming, upside will be limited,” he said.Fed Cut Hopes Linger Amid Recession FearsDespite the downturn, futures markets still price in a Federal Reserve rate cut as early as June, according to CME FedWatch data. Kobeissi noted that rising recession risks are likely behind market expectations of a pivot.However, with inflation data still elevated and employment showing strength, markets may remain choppy until clearer policy signals emerge.What’s Next for Bitcoin?With BTC nearing critical support at $80K and macro headwinds intensifying, analysts warn that volatility is likely to persist. If history repeats, this current pullback could mirror previous post-event corrections seen after the 2020 pandemic, the January ETF launch, and the August 2024 yen carry trade unwind.Unless buyer demand returns or macro conditions ease, Bitcoin could enter a prolonged consolidation phase, with downside targets around $76K to $71K in play, according to Cointelegraph.
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