Bitcoin has dipped below $63,000 during Asian trading hours, continuing a downward trend attributed to President Trump’s tariffs and concerns surrounding AI, which have affected investor confidence. The leading cryptocurrency has seen a nearly 7% decline this week, with current trading levels reminiscent of February 6, when it last approached $60,000.
“Like stocks, Bitcoin fell sharply today, largely due to fresh tariff uncertainties akin to those faced in April 2025. Additionally, rising geopolitical tensions are likely to weigh on BTC in the near term,” commented Matt Howells Barbee, a vice president at Kraken, via email.
He mentioned that the $60,000 mark serves as a crucial support level that traders are monitoring. “If it doesn’t hold, we might see prices drop into the mid-to-low $50,000 range,” he added.
On Monday, U.S. stocks also experienced a decline following Trump’s announcement of a temporary 15% tariff on imports, which is an increase from the previously announced 10%. This decision came after the Supreme Court scrapped the earlier tariff strategy. Meanwhile, investors are offloading stocks of companies expected to be affected by the AI shift.
Historical Trends Suggest Possible BTC Decline
History indicates that Bitcoin typically doesn’t hit its lowest point until the 50-week average price dips below the 100-week average. This “bear cross” has previously signified the end of major bear markets, including those of 2022 and 2018.
Currently, the 50-week average remains well above the 100-week average, indicating we are far from such a market signal.
Given historical patterns, the market may still slide further, potentially dropping below $50,000, as multiple analysts shared with Consensus Hong Kong prior to any bearish crossover and subsequent capitulation.
This situation might seem paradoxical; when the 50-week average goes below the 100-week average, it could signal further weakening momentum.
Yet, this reflects the reactive nature of moving averages. Crossovers often validate past movements rather than forecast future trends, suggesting that long-term shifts usually signify the conclusion of Bitcoin’s bear phases.
Nonetheless, it’s essential to remember that, like all indicators, historical performance isn’t a surefire predictor of future outcomes.
