Bitcoin relief rally fizzles as White House confirms 104% China tariffs — Will BTC fall to new lows?

Bitcoin’s surprise rebound to $81,180 — which was influenced by fake news regarding a pause on US tariffs — has all but evaporated following White House confirmation that 104% tariffs on China will start on April 9.

After dropping below the $75,000 level for the first time since Nov. 6, 2024, BTC retested a key demand zone that traders hope will provide a safe haven for the bulls.

The safe haven is a fair value gap located between $77,000 and $73,400, and this zone was created during the November 2024 Trump pump.

MN Capital founder Michael van de Poppe had earlier asserted that Bitcoin needed to retest this zone “before going back upward.”

“Bitcoin attacking $80,000 is a strong sign,” said van de Poppe in another X post on April 8, adding:

“I don’t know whether we’ll be having another drop or whether we’ve seen it all.”

Fellow analyst Jelle shared similar sentiments, saying that Bitcoin’s close above $79,000 on April 7 after dropping as low as $74,400 was impressive compared to how equities performed.

“Waiting for the dust to settle – expecting the price to move higher once that happens.”

Related: Bitcoin may rival gold as inflation hedge over next decade — Adam Back

Bitcoin’s long-term holders’ activity spells doom for BTC price

Data from onchain analytics platform CryptoQuant now shows that the long-term holders (LTHs) — individuals and entities who have held Bitcoin for more than 155 years — could be preparing to sell their coins, particularly after the latest crash.

The Exchange Inflow Coin Days Destroyed (CDD) metric measures the volume of Bitcoin moved to exchanges, weighted by how long those coins were held dormant, indicating potential selling pressure from long-term holders.

There was a massive spike in this metric on April 7, signaling that the old coins are waking up, which is historically a bearish sign. 

A chart posted by a CryptoQuant contributor, IT Tech, in one of its “Quicktake” blog posts showed that when the metric spiked on April 2, Bitcoin price dropped from $88,000 to $81,000.

A similar spike was seen on March 27, preceding a 7% drop in price over two days.

Spotting a similar spike on April 7, the analyst wondered whether Bitcoin’s “ long-term holders preparing to sell again?”

If history repeats itself, Bitcoin’s sell-off could continue for a few more days, with the March 2024 all-time high near $74,000 presenting the first line of defense.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.