Bitcoin, altcoins, and the stock market continued their downward trend on Friday as the trade war between the U.S. and China escalated.

Bitcoin (BTC) price dropped to $82,000, erasing some of the gains made during the Asian and European markets. Ethereum (ETH) dropped below $1,800, while the market cap of all coins fell to $2.64 trillion.

The stock market’s performance was even worse as futures tied to the Dow Jones, S&P 500, and Nasdaq 100 indices plunged by over 3%. This means that these blue-chip indices have all moved into a correction. 

Trade war escalates

Bitcoin, altcoins, and equities declined after China announced its retaliatory measures against the U.S. In a statement, Beijing said it would impose a 34% tariff on all goods imported from the U.S.

In addition, China will restrict exports of certain rare earth minerals, halt sorghum imports from U.S. companies, and add 11 American firms to its unreliable entity list.

These measures mark the most significant response to Donald Trump’s Liberation Day tariffs. Other countries, especially those in Europe, have called for negotiations to prevent the trade war from expanding.

Trump and senior officials have warned that the U.S. will deliver reciprocal tariffs on any country that retaliates. They’ve urged trading partners to lower their tariffs and non-tariff barriers instead.

Therefore, Bitcoin, altcoins, and the stock market are falling as these actions lead to higher odds of a recession. Polymarket data shows that traders have boosted their recession odds to 56%. Companies like Goldman Sachs and PIMCO have also boosted their recession odds. 

These fears have pushed market sentiment into extreme territory. The CNN Money Fear and Greed Index dropped to 6, the lowest reading since the onset of the COVID-19 pandemic.

Investor pessimism intensified after billionaire and former Bond King Bill Gross warned against buying the dip. He said:

“Investors should not try to ‘catch a falling knife. This is an epic economic and market event similar to 1971 and the end of the gold standard except with immediate negative consequences.”

Bitcoin, altcoins, and the stock market fall after NFP data

Markets also weakened after the U.S. released the latest nonfarm payrolls (NFP) report. The data showed that unemployment rose to 4.2% in March, up from 4.1% in February.

The economy added 228,000 jobs, beating analysts’ median forecast of 137,000. However, the manufacturing sector, which Trump aims to protect with his tariff policy, created just 1,000 jobs.

These figures will likely have minimal impact on the Federal Reserve, which remains focused on inflation and GDP growth.

Meanwhile, the bond market is signaling expectations of lower interest rates. The 10-year Treasury yield fell to 3.89%, while the 30-year and 2-year yields declined to 4.38% and 3.5%, respectively. If the Fed cuts rates, it would likely be bullish for Bitcoin, altcoins, and the broader stock market.

The XRP price is showing signs of a strong bullish reversal, with a crypto analyst predicting a potential rebound toward $3.5 and even higher. After experiencing significant volatility and undergoing a consolidation due to recent price declines, technical indicators now show support for XRP’s bullish outlook. As a result, the analyst has provided a short—and long-term price target for the cryptocurrency. 

XRP Price Projected To Reverse To $3.5

According to ‘Setupsfx’, a crypto analyst on TradingView, XRP is now in a bullish reversal phase, meaning its price is expected to break out of its recent downturn and rise to new highs. Based on the expert’s chart analysis of XRP, the cryptocurrency is predicted to see an explosive increase to $3.5 following the end of its consolidation phase.

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The chart indicates that the price of XRP is expected to rise to $3.5 in the coming months. However, from a fundamental analysis perspective, the analyst believes XRP is not limited to this bullish price target and could potentially surpass it to exceed current all-time highs of $3.84.

While the TradingView expert’s analysis of XRP maintains a neutral stance, implying uncertainty in the trend, he has also emphasized the cryptocurrency’s strong potential for growth. Hence, XRP could experience significant upward movement if market conditions align favorably and investor sentiment and confidence strengthen.

For his short-term price target, the crypto analyst forecasts that XRP could rally to a level above $3.5. He advises traders who intend to hold their positions for a short period to aim for this price level, as it could be a strategic exit point before a potential pullback. 

Notably, the analyst’s long-term price target for XRP has been set at $4.0 or higher. Considering XRP’s price is currently trading at $2.09, a surge to $4 would represent an almost 100% increase in its price.

Technical Elements Supporting Bullish Reversal

In his chart analysis, Setupsfx highlights XRP’s price action in a 12-hour time frame, showcasing key movements, trends, and technical elements that support his bullish projection. These elements include liquidity and IMB zones, which are areas where price action is expected due to pending orders. 

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The analyst also highlights an accumulation phase, as XRP has been consolidating at lower levels, signaling the possibility of a potential breakout. The appearance of strong low wicks further indicates that buyers are regaining control of the market. 

Finally, the TradingView analyst has indicated that the altcoin has already undergone a three-point trendline rejection, which means it has tested and rejected a resistance level multiple times. The expert’s price chart also provides an ideal entry point for both short and long-term traders, marked at $1.8. A stop loss has also been placed significantly lower around $1.2 to minimize potential losses.

Featured image from iStock, chart from Tradingview.com

Technical expert Tony Severino has warned that the Bitcoin and altcoins Fischer Transform indicator has flipped bearish for the first time since 2021. The analyst also revealed the implications of this development and how exactly it could impact these crypto assets. 

Bitcoin And Altcoins Fischer Transform Indicator Turns Bearish

In an X post, Severino revealed that the total crypto market cap 12-week Fisher Transform has flipped bearish for the first time since December 2021. Before then, the indicator had flipped bearish in January 2018. In 2021 and 2018, the total crypto market cap dropped 66% and 82%, respectively. This provides a bearish outlook for Bitcoin and altcoins, suggesting they could suffer a massive crash soon enough. 

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In another X post, the technical expert revealed that Bitcoin’s 12-week Fischer Transform has also flipped bearish. Severino noted that this indicator converts prices into a Gaussian normal distribution to smooth out price data and filter out noise. In the process, it helps generate clear signals that help pinpoint major market turning points. 

Severino asserted that this indicator on the 12-week timeframe has never missed a top or bottom call, indicating that Bitcoin and altcoins may have indeed topped out. The expert has been warning for a while now that the Bitcoin top might be in and that a massive crash could be on the horizon for the flagship crypto.

He recently alluded to the Elliott Wave Theory and market cycles to explain why he is no longer bullish on Bitcoin and altcoins. He also highlighted other indicators, such as the Parabolic SAR (Stop and Reverse) and Average Directional Index (ADX), to show that BTC’s bullish momentum is fading. The expert also warned that a sell signal could send BTC into a Supertrend DownTrend, with the flagship crypto dropping to as low as $22,000. 

A Different Perspective For BTC

Crypto analyst Kevin Capital has provided a different perspective on Bitcoin’s price action. While noting that BTC is in a correctional phase, he affirmed that it will soon be over. Kevin Capital claimed that the question is not whether this phase will end. Instead, it is about how strong Bitcoin’s bounce will be and whether the flagship crypto will make new highs or record a lackluster lower high followed by a bear market. 

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The analyst added that Bitcoin’s price action when that time comes will also be trackable using other methods, such as money flow, macro fundamentals, and overall spot volume. The major focus is on the macro fundamentals as market participants look forward to Donald Trump’s much-anticipated reciprocal tariffs, which will be announced tomorrow. 

At the time of writing, the Bitcoin price is trading at around $83,000, up around 1% in the last 24 hours, according to data from CoinMarketCap.

Featured image from Unsplash, chart from Tradingview.com