Bitcoin price continued falling on Thursday after losing a major psychological support at $70k that analysts had been warning could see the flagship crypto visit multi-year lows.
Bitcoin is down over 22% this week, and has dropped nearly 10% today as a confluence of macroeconomic pressures, weakening technicals, and a lack of demand continued to keep risk sentiment away.
Why Bitcoin price is going down?
The recent slide began with broader risk aversion after Kevin Warsh’s appointment as Federal Reserve Chair raised expectations of a more hawkish policy stance.
The US Dollar Index surged above 97.5, tightening financial conditions and putting pressure on all risk assets, including crypto.
Investors were also rattled by weak US labour data, with private payrolls in January growing by just 22,000, far below estimates.
This revived fears of a potential recession and pushed capital toward safer assets like Treasuries, draining liquidity from speculative sectors.
A sharp drop in tech stocks has added further pressure. AMD’s disappointing earnings forecast triggered a 17% plunge in its stock, while Nvidia fell over 3%.
Bitcoin, increasingly viewed as a proxy for tech and high-growth bets, has been caught in the crossfire.
Meanwhile, institutional flows have dried up. US spot Bitcoin ETFs have recorded $2.9 billion in outflows over the last 12 sessions, with total redemptions nearing $6 billion since November.
These products, once seen as a backstop during market stress, are now contributing to downside pressure.
Stablecoin growth has also turned negative for the first time since 2023.
With Tether’s market cap declining, the market is seeing less fresh capital entering, making it harder for Bitcoin to absorb ongoing selling pressure.
How low can Bitcoin go?
On the technical side, Bitcoin’s break below $70,000 wiped out nearly $800 million in long positions.
Subsequently, Bitcoin also briefly lost the next key support around $68,000 near the 200-week EMA, which traders were watching for signs of a deeper correction.
Unless Bitcoin bulls can reclaim $68,000 and subsequently $70,000 with strong volume, the current trajectory remains tilted toward further downside, with sellers firmly in control and sentiment still fragile.
Well‑followed market analyst Rekt Capital agrees that Bitcoin may be entering a bearish period, warning that the recent breakdown marks a meaningful shift in market structure rather than a routine pullback.
Without providing a specific downside target, the analyst noted that Bitcoin has broken below a long‑standing macro triangle on the monthly chart, a move he described as entering a phase of “bearish acceleration,” where losses can deepen rapidly if support fails to re‑emerge.
“This is now the 4th consecutive cycle where the crossover of the Bull Market EMAs has preceded macro downside continuation,” the analyst noted in a subsequent post.
Fellow market commentator Titan of Crypto pointed to Bitcoin breaking below a key fair value gap on the charts and offered downside targets around $66.9k, $64.8k, and as low as $59k if selling pressure continues.
However, according to pseudonymous analyst il Capo of Crypto, the current price action has landed Bitcoin in a key support zone, creating ideal conditions for a short squeeze which could see an aggressive rebound as overleveraged short positions get unwound. See below.
At press time, Bitcoin was trading at $66,952, down around 9.1% on the day.
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