Key Takeaways
Black Monday was a severe stock market crash on Monday, Oct. 19, 1987. Since then, people have used the term whenever the market crashed significantly on a Monday.
The S&P 500 futures are already down 4% pre-market open after a notable drop last week. Concerns over even more tariffs levied by U.S. President Donald Trump have likely led to the decline since other countries have already implemented retaliatory tariffs against the USA.
After falling over 5% today, the Bitcoin price nearly reached a new yearly low, which could cause it to plunge due to the lack of support below. Thus, the question is: Will April 7 be known as Black Monday?
Bitcoin Price Crashes
The BTC price has fallen under a descending resistance trend line since the all-time high of $109,356 on Jan. 20.
Bitcoin’s downward movement led to a low of $76,600 on March 11, a 30% decline from its all-time high.
As predicted last week, Bitcoin created a bearish candlestick with a long upper wick (black circle) and resumed its downward trend.
BTC/USDT Weekly Chart | Credit: Valdrin Tahiri/TradingView
Technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling.
The RSI has decreased below 50 while the MACD is negative, both signs of a bearish trend.
The closest horizontal support is $69,000, but the main Fibonacci support area is between $51,500 and $62,600.
What Lies Ahead?
Bitcoin’s wave count also gives a bearish price prediction. It suggests that Bitcoin completed its bullish five-wave upward movement (green) in January.
The BTC price increase lasted for nearly 800 days. Wave five extended and has the same length as waves one and three combined.
Furthermore, the weekly RSI generated a bearish divergence (orange). These are all signs of a market cycle top.
If the count is accurate, BTC has started a new five-wave upward movement. Wave two ended with last week’s highs, and BTC is now falling in what is likely wave three.
Giving wave three the same length as wave one leads to a low of $56,340 in the middle of the 0.5-0.618 Fibonacci retracement support levels.
The wave count suggests that the lower Fibonacci target will likely act as the bottom rather than the $69,000 horizontal support level.
Black Monday
Bitcoin’s price has fallen 30% since its all-time high. After a failed rally in March, the price resumed its downward trend in April.
Technical indicators, price action, and indicator readings all provide a bearish Bitcoin price prediction.
As a result, the decline could continue this week, leading to lows of at least $69,000.
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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