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Bitcoin (BTC) has demonstrated its maturity in the past few days as the wider stock market swooned from the escalated trade wars. On Friday, China retaliated against the U.S. tariffs, thus further weakening major stock indexes led by the S&P 500, the Dow Jones Industrial Average, and the Nasdaq composite.
However, Bitcoin price teased $84k, as its 24-hour average trading volume surged over 22 percent to hover at about $42 billion on Saturday, during the mid-London session.
Recession Looms
The ongoing global trade war is expected to significantly disrupt international supply chains. JPMorgan Chase & Co. said it expects the U.S. economy to fall into a recession this year.
“We now expect real GDP to contract under the weight of the tariffs, and for the full year we now look for real GDP growth of -0.3 percent, down from 1.3 percent previously,” Michael Feroli, chief U.S. economist at JPMorgan noted.
Bitcoin Whales on the Hunt
Bitcoin has been identified as a hedge against ongoing macroeconomic uncertainties. Moreover, gold was exempted from the ongoing tariffs, and BTC is widely regarded as the modern digital gold.
Consequently, long-term whale investors have accelerated their BTC accumulation in anticipation of a bullish breakout ahead. According to on-chain data analysis by Intotheblock, the volume of large transactions has increased by $136 billion in the past seven days.
Meanwhile, the overall supply of BTC on centralized exchanges has declined from 2.22 million on March 18 to around 2.19 million on April 5.
What Next?
From a technical analysis standpoint, Bitcoin price has approached the apex of a multi-week correction and consolidation. According to Matthew Dixon, a veteran financial trader, the BTC price is on the cusp of a major capitulation towards $70k.
However, the BTC price has established a robust support level of around $80.5k, which could form a basis for the next rally towards $85.5k and $92k soon.