Bitcoin (BTC) has experienced a severe decline, losing over $53,000 in value over the past four months. The cryptocurrency, which peaked near $126,000 in October 2025, has fallen to around $73,200, marking its lowest level of the year. This sharp downturn has erased much of last year's rally and wiped out more than $1.1 trillion from Bitcoin's market capitalization, pushing it roughly 42% below its all-time high.
The selloff has exerted significant pressure on the broader cryptocurrency market. Ethereum (ETH) is down about 56% from its peak, reinforcing concerns that digital assets are entrenched in a prolonged bearish phase. This stands in stark contrast to traditional U.S. equity markets, where major indexes like the S&P 500 and Nasdaq remain close to record highs, down only 1.5% and 3.6% from their peaks, respectively.
Technical analysis reveals a deteriorating picture for Bitcoin. On the hourly chart, the price is falling after breaking a local support level at $74,141. Analysts warn that if the daily close remains far from this mark, a test of the $73,000 zone is imminent. On longer timeframes, sellers are in control, with a potential breakout below $72,863 likely to trigger a further decline toward the $70,000 area by the week's end.
A key bearish signal has emerged from Bitcoin's breach of its 365-day moving average. Crypto market analyst Julio Moreno highlighted this technical event, noting that this indicator has historically marked the shift from bull to bear markets. "When price drops below the one-year average, that level tends to become resistance," Moreno stated. He argued that the current downturn, which began after Bitcoin fell below this level in November, has been more severe than the early 2022 correction, suggesting a potentially more prolonged bear phase.
Looking ahead, analysts are watching several critical price levels. $89,000 is viewed as a major resistance zone where any potential rallies could stall. $79,000 is considered near-term support, but a sustained break below it could open the door for a drop to $70,000 or lower. From a mid-term perspective, traders are advised to monitor the weekly close relative to the $74,434 level for directional clues. At press time, Bitcoin is trading at $74,251.
