Bitcoin Dips Below $78K Amid U.S.–China Trade War Escalation — Expert Warns: ‘Don’t Buy the Dip Yet’

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The U.S. has escalated its trade tensions with China by imposing a staggering 104% tariff on Chinese goods, effective at noon on April 9, 2025. This aggressive move marks a significant step in the ongoing trade war between the two economic giants. The tariff is a direct response to China’s continued imposition of retaliatory tariffs on U.S. exports, intensifying already strained relations. The timing of this decision is critical, as it adds more uncertainty to the global economic landscape, which may influence various financial markets, including Bitcoin.

Bitcoin’s Price Faces Critical Test

As global economic tensions rise, Bitcoin‘s price is facing a crucial test. The cryptocurrency is currently hovering in a critical support zone, with traders closely watching the $75,152 to $77,672 range. This level is pivotal—if Bitcoin manages to hold above this zone, it could signal a potential bounce. However, with uncertainty surrounding global markets, including the impact of the new tariffs, Bitcoin could see further declines before any recovery begins.

Bitcoin’s short-term price action remains highly uncertain. If the cryptocurrency can rise above $81,282, it might signal the beginning of a bullish trend. However, a mere brief surge above this threshold won’t be enough to confirm a reversal. For a more robust bullish signal, Bitcoin would need to break decisively above $83,792.

Should You Buy the Dip?

In light of recent market volatility, Glen Goodman, a seasoned crypto trader and author, advises caution. He emphasizes the risks of trying to “catch a falling knife,” a term used to warn against buying during a steep decline, as it could lead to significant losses. Instead, Goodman recommends waiting for market stabilization, where clear signs of recovery—higher highs and higher lows—emerge before making any buying decisions.

Also Read: Trump Escalates Trade War: Threatens 50% Tariff Hike on China, Markets Reel

While Bitcoin’s long-term outlook remains promising, especially after its strong performance since 2023, the current market dip raises questions about the sustainability of its growth trajectory. Investors should approach the market cautiously, especially in the face of growing economic uncertainty and potential impacts from global trade conflicts.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.