Bitcoin (BTC) Price Teases $84k as Recession Looms

Bitcoin (BTC) has demonstrated its maturity in the past few days as the wider stock market swooned from the escalated trade wars.

The cryptocurrency market has shown surprising resilience in the face of the broader stock market downturn, which was triggered by escalated trade wars. As China retaliated against the U.S. tariffs on Friday, major stock indexes including the S&P 500, Dow Jones Industrial Average, and Nasdaq composite slipped further.

However, Bitcoin price flirted with the $84k mark on Saturday, as its 24-hour average trading volume shot up over 22 percent to trade above $42 billion during the mid-London session.

Recession in Sight

The ongoing global trade war is expected to cause substantial disruptions to international supply chains. JPMorgan Chase & Co. has adjusted its forecast to anticipate a recession in the U.S. economy this year.

“We now expect real GDP to contract in 2Q at an annualized rate of 1.5 percent and for the full year we now look for real GDP growth of -0.3 percent, down from 1.3 percent previously,” said Michael Feroli, chief U.S. economist at JPMorgan in a note.

Bitcoin: A Hedge Against Macro Turmoil

Bitcoin has emerged as a preferred hedge against the prevailing macroeconomic uncertainties. It's worth noting that gold was excluded from the recent tariffs, and BTC is often viewed as the modern digital gold.

Anticipating a bullish breakout, long-term whale investors have ramped up their BTC accumulation. On-chain data analysis from Intotheblock reveals a $136 billion increase in the volume of large transactions over the past seven days.

At the same time, the total BTC supply on centralized exchanges has decreased from 2.22 million on March 18 to approximately 2.19 million on April 5.

From a technical analysis perspective, Bitcoin price has reached the upper levels of a multi-week correction and consolidation. According to Matthew Dixon, a seasoned financial trader, the BTC price is nearing a significant capitulation towards $70k.

However, the BTC price has encountered strong support around the $80.5k zone, setting the stage for the next rally towards $85.5k and $92k in the near term.