Tariff-sensitive Australian dollar gives hope to Bitcoin supporters as BTC dips below $75K
The tariff-sensitive currency has risen nearly 100 pips from its Asian session low, suggesting a possible lower limit for risk selling.
Author: Omkar Godbole | Edited by: Sheldon Reback Updated: April 7, 2025, 7:37 AM Published: April 7, 2025, 7:16 AM
What you should know:
- Bitcoin price fell below $75,000 amid worsening trade tensions, as evidenced by the bearish reversal pattern seen in January.
- The Australian dollar is showing signs of recovery, which could indicate that the tariff-induced sell-off may be ending.
- Bottom fishing strategy during a market downturn is considered risky.
About 10 weeks ago, CoinDesk discussed a bearish “double top” reversal pattern in the Bitcoin (BTC) market, warning of a sell-off to $75,000, a common sign of a bull market pullback.
The price fell below that level on Monday as escalating trade tensions wrecked financial markets, sending Dow Jones Industrial Average futures down a whopping 900 points. According to technical analysis theory, the BTC selloff could slow in the $70,000 to $75,000 range, as mentioned in January.
Elsewhere, the Australian dollar (AUD), a commodity currency particularly sensitive to global trade tensions under Trump, is giving crypto investors hope. The AUD/USD pair rebounded to 0.6011 after falling as low as 0.5930 earlier Monday, according to TradingView data. The pair suffered its biggest losses on Friday, falling more than 4%, a significant move for the national currency.
When trade tensions escalate, the currencies of countries involved in the conflict tend to react quickly due to expected changes in trade balances, economic conditions and interest rate expectations. The Australian dollar is one such currency. As the currency of commodity exporter Australia, it is seen as a proxy for China, one of the country’s largest customers. So a sharp rebound in the Australian dollar could signal that the tariff-fuelled sell-off is reaching its peak.
However, bottom fishing in a falling market is like catching a falling knife and is a risky strategy.
