Bitcoin Price News: BTC Could Plunge to $52K as Tariffs Chaos Shocks Markets

Bitcoin (BTC) started the week with a steep drop after President Donald Trump once again rattled the market with an unexpected increase in global tariffs.

Even though the Supreme Court declared that the head of state’s decision to raise levies on imported goods was not lawful under the IEEPA framework, Trump opted to take another route via Section 122 of the Trade Act of 1974 to increase tariffs by as much as 15%.

This provision allows the President to increase levies for 150 days without Congress’s approval.

The markets once again panicked over the decision, causing Bitcoin to drop sharply to $64,000 at some point in the past 24 hours, to then settle slightly above the $66,000 mark.

Bitcoin Price Volatility (30d) – Source: Santiment

Trading volumes have jumped by 120% during this period, as the selling pressure increased. Similarly, the token’s short-term price volatility spiked.

Meanwhile, long liquidations surged to $392 million in the past 12 hours right after Trump announced this new tariff increase. Bitcoin’s year-to-date losses are now sitting at 24% as a result of the latest turmoil.

Weekly RSI Hits Lowest Level Since 2022

Although market sentiment has recovered slightly, these kinds of measures create significant uncertainty.

The Fear and Greed Index currently sits at 14, indicating that investors are in “Extreme Fear” mode.

Looking at BTC’s weekly chart, data from Santiment shows that the Relative Strength Index (RSI) in this higher time frame has hit its lowest level since June 2022.

Bitcoin Weekly RSI – Source: Santiment

Back then, the price of BTC traded at around $20,000. The cycle’s bottom came in at $16,000, meaning that we could still see the token dropping by another 20% from where it is right now.

This would mean that the top crypto could find a definite floor at around $52,000 during this cycle before a true recovery begins.

This is the third time that the weekly RSI has hit such low levels in 8 years. The last two times it did, BTC has delivered gains of 108% (2018) and 50% (2022) just 12 months after.

These instances have also been quite profitable entry points for buy-and-hold investors, as they have delivered triple-digit returns even over long periods of three years or more.

Bitcoin’s Cycle Bottom Could Be in the Low $50,000s

Heading to the daily chart, BTC recently found support at $60,000 and has managed to stay above this level in the past two weeks or so.

BTC/USD Daily Chart – Source: TradingView

As we highlighted in previous Bitcoin price predictions, this is the most likely target in the near term. Meanwhile, the nearest support below this mark if the $60K level falters would be $52,000, which is in line with the estimates discussed below based on the RSI’s historical performance.

Extremely negative momentum and sentiment readings favor this thesis, as the “smart money” could start scooping up the token at this low price at a point when global adoption of cryptocurrencies is accelerating.

President Donald Trump’s ongoing trade war with the entire world will probably keep the markets on its toes, but the long-term outlook remains favorable for digital assets.

Meanwhile, the daily RSI is also stepping out of oversold territory after printing its lowest reading since the pandemic.

Based on these technical readings, BTC looks heavily undervalued for investors with a long-term horizon of one to three years who can stomach some short-term volatility.