Bitcoin's price extended its sharp decline, falling below the critical long-term support level of $74,500 and briefly touching a low of $72,865—its lowest level since November 2024. This move confirmed a bear market territory, with the asset crashing 25% in less than three weeks and down 40% from its all-time high. Analyst 'Bull Theory' noted the severity, stating, "Bitcoin has now crashed over $53,000 in the last 120 days. Either this is an insane level of manipulation or something huge has broken behind the scenes in crypto."
The downturn was exacerbated by significant capitulation from short-term holders. CryptoQuant analyst 'Darkfost' reported that more than 40,000 BTC were sent to exchanges at a loss in a single day, with the figure reaching 54,000 BTC the previous day. At current prices, this represents roughly $4 billion in potential selling pressure. Santiment provided further detail, indicating that wallets holding 10 to 10,000 BTC—which collectively hold over two-thirds of all Bitcoin—dumped 50,181 units in the past two weeks alone.
Technically, Bitcoin faces substantial hurdles for any recovery. The price is trading below $77,000 and the 100-hour simple moving average, with immediate resistance near $76,750. A key bearish trend line is forming with resistance at $77,200 on the hourly chart. If Bitcoin fails to break above this $77,200 resistance zone, analysts warn another decline is likely, with major support levels at $75,000, $74,000, and $72,850. The main support sits at $70,000.
While Bitcoin recovered slightly to trade around $76,500 in early Asian trading Wednesday, the broader crypto market remains in meltdown. Total market capitalization tanked to a nine-month low of $2.64 trillion. Ethereum fell to $2,120 before a minor recovery, and most altcoins crashed to crypto winter lows with minimal bounce. Despite the panic, some analysts remain positive. 'Sykodelic' suggested this move below $74K could "provide the springboard for the next macro leg higher," calling it a "massive bear trap." Swissblock described the current negative momentum as "extreme."
