Bitcoin Price Decline: Is the Worst Yet to Come?

Bitcoin Price- Will Bitcoin Rebound or Fall Below $70K?

Bitcoin Price– Bitcoin (BTC) has experienced a significant 26.62% decline from its all-time high of $109,500, and it is currently on track to become the deepest drawdown in the ongoing bull market cycle. Despite this drop, experts note that the current downturn is less severe than previous bear markets. According to Julio Moreno, the head of research at CryptoQuant, Bitcoin (BTC) has seen significant declines in past cycles, including an 83% drop from its 2018 peak and a 73% correction from its 2022 highs.

While the current 26.62% drop is noticeable, it remains less intense compared to previous bear market cycles. However, analysts from ecoinometrics suggest that Bitcoin might face challenges in staging an immediate recovery. They point out that historically, when the NASDAQ 100 drops below its long-term average return, Bitcoin tends to experience slower growth and faces higher risks of a deeper correction.

Bitcoin’s recent price movement has also affected strategies like that of Michael Saylor, who chose not to purchase more Bitcoin for his company’s treasury between March 31 and April 6. According to Strategytracker, Saylor’s firm, which spent $35.65 billion on its Bitcoin holdings, is currently seeing a modest 17% return over a five-year holding period.

On the weekly chart, Bitcoin recently tested its 50-week exponential moving average (EMA) for the first time since September 2024. Historically, a weekly close below the 50-W EMA has marked the start of a bear market in previous cycles. The immediate support level to watch is $74,000, which represents the early 2024 all-time high. However, the demand zone between $65,000 and $69,000 could prove more significant, especially since $69,000 was the all-time high in 2021.

RSI Signals Potential Rebound

Bitcoin’s relative strength index (RSI) reached its lowest value of 43 at the end of Q1 2025, which is noteworthy. In the past, Bitcoin has bounced back after similar RSI levels, as seen in August 2023 and September 2024. In contrast, when the RSI dropped below 40 in 2022, the bears gained full control of the market. Crypto trader Rekt Capital speculates that the bottom for this correction might be between current levels and $70,000, based on historical RSI trends.

Despite the recent declines, Bitcoin’s long-term outlook remains promising, with support levels indicating potential opportunities for recovery if the broader market conditions stabilize. Investors should continue monitoring Bitcoin’s performance closely, especially in light of potential macroeconomic factors that could influence the market.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.