Bitcoin May Slip Below $80K As Trump Spooks Risk Traders

Bitcoin (BTC) slipped 0.65% in the past 24 hours to $87,477 on March 27, showing signs of exhaustion after a brief rebound. The decline came as President Trump announced a 25% tariff on U.S. auto imports, shaking global markets and weakening risk sentiment.

Bitcoin Rising Wedge Indicates Drop Below $80K

A classic rising wedge pattern is currently forming on the Bitcoin daily chart. This pattern is characterized by converging trendlines—an ascending support line and an ascending resistance line—that compress price action, typically leading to a breakdown.

In this case, the rising wedge follows a sharp decline from around $106,000 earlier in March to below $80,000, making it a textbook bearish continuation pattern.

Bitcoin has been consolidating between the 50-day exponential moving average (EMA) at ~$88,829 and the 200-day EMA at ~$85,562, struggling to reclaim the short-term trend. The Relative Strength Index (RSI) is also hovering near neutral levels (52.08), suggesting a lack of bullish momentum.

Should the wedge break down—typically confirmed by a daily close below the lower trendline—the bearish target becomes the height of the wedge subtracted from the breakdown point. That would put BTC’s downside target near $79,773, just below the psychological $80,000 support level.

The confluence of overhead resistance from moving averages, a weakening RSI, and receding volume during the price rise lends further weight to the bearish scenario. Traders should monitor for a decisive break of the lower wedge boundary in the coming sessions.

Trump Trade War and Its Impact on Risk Appetite

Markets have grown increasingly jittery after Trump imposed a 25% tariff on all automobiles not made in the United States, effective April 3.

The move triggered a sell-off in global auto stocks and prompted concerns over a broader trade war escalation. Trump has further threatened additional tariffs on the EU and Canada, which has only amplified investor fears.

For Bitcoin, the renewed trade war rhetoric couldn’t come at a worse time. In 2025, the digital asset has shown sensitivity to macroeconomic shocks, especially those that affect global liquidity and investor risk appetite.

Earlier this month, Bitcoin dipped sharply as tariff rumors surfaced. Now, with a formal proclamation in place, traders are increasingly wary of allocating capital to volatile assets like crypto.

Market strategists warn that escalating trade tensions may lead to a broader risk-off move, hurting Bitcoin and other cryptocurrencies in the short term.

According to Deutsche Bank data, liquidity in S&P 500 futures is already at a two-year low, an indication that large players are stepping to the sidelines. Bitcoin’s rising wedge breakdown could coincide with this liquidity squeeze, adding pressure to a fragile market.