Market Analysts Share Their Expectations for the Falling Bitcoin Price, Warning Issued!

The week-long decline of Bitcoin intensified, dropping to as low as $78,226 with a 7.2% decrease at one point before reducing the losses.

The world's largest cryptocurrency suffered a dramatic decline amidst market turmoil and increasing concerns about US trade policies, falling by 28% from its all-time high of $109,241 reached on January 20th.

The crypto market's recent downturn comes amid a period of increased risk-aversion in financial markets, triggered by U.S. President Donald Trump's renewed tariff threats. Trump announced that the 25% tariffs on Canadian and Mexican goods will go into effect on March 4, and an additional 10% tariff will be imposed on goods imported from China. In response, Beijing promised to take "all necessary measures." Trade tensions dampened investor sentiment, fueling a sell-off in stocks and risk-sensitive assets, with cryptocurrencies being among the hardest hit.

Zaheer Ebtikar, co-founder of the crypto fund Split Capital, said, "At the end of the day, some big investors said, 'you know what, I'm giving up.'" and added, "There was definitely a lot more selling than usual, so it's difficult to pinpoint a specific exchange or place."

Bitcoin's decline pushed below key technical levels that investors are watching for signs of a potential turnaround. BTC fell below its 200-day moving average for the first time since October, while the 14-day relative strength index (RSI) entered oversold territory for the first time since September.

BitGo Inc., a cryptocurrency custody firm, OTC trading director Stefan von Haenisch, noted that traders are still waiting for clarification on cryptocurrency policies, including speculation about Trump's potential Bitcoin stash. "Given the macro environment, it's not surprising to see where we are," he said.

Market analysts warn that if the sensitivity in stocks continues to deteriorate, Bitcoin could see even more severe losses. Mark Cudmore, MLIV's Editor, warned, "The real panic may still lie ahead. There could always be another 70% or more collapse in Bitcoin's future."

Cudmore highlighted the $72,000-74,000 range as a potential technical crisis zone that could trigger another prolonged crypto downturn.

Ruslan Lienkha, market chief of the crypto platform YouHodler, suggested that Bitcoin could find support around $70,000, but warned against assuming the worst is over. Lienkha said, "We can only see this level if there is a negative sentiment in the stock markets."