Bitcoin Experiences Dramatic Storm: 15 Months of Bullish Gains Drop Below $70K

Bitcoin Experiences Dramatic Storm: 15 Months of Bullish Gains Drop Below $70K

We are entering a new era of uncertainty in the cryptocurrency market. The price of the most famous cryptocurrency, Bitcoin, has bounced off long-term gains and dropped below $70,000 for the first time since November 2024. The drop marks the loss of 15 months of bullish growth and raises questions about where the price may go next.

Drop below key levels and coordinated selling

On Thursday, Bitcoin plunged as low as $69,100, its lowest level since early November 2024. Data from TradingView showed that there was a sharp decline during the Asian trading session, which triggered the liquidation of long positions worth over $130 million in just four hours. This massive selling pressure not only erased previous gains but also broke the 2021 high, paving the way for another possible price decline.

Rising Volatility and Precious Metals Copying

Like gold and silver, which are experiencing their ups and downs, Bitcoin is now in a precarious phase. Gold, which had seen a slight rebound to $5,100 an ounce the day before, fell as low as $4,789 on Thursday before attempting to retrace its steps back to the psychological $5,000 mark. Silver has been trading between $90 and $73 an ounce, with volatility remaining in check.

Traders Warn of Further Drops

“Bitcoin has entered a key support zone,” trader CW warned on social media. “If it fails to hold the $69,000 level, it could see another significant drop.” Some experts are speculating about a target of around $50,000, with the 200-week EMA trendline as a key technical level.

Some analysts and traders are suggesting that coordinated selling by large entities is behind the sharp decline. Alistair Milne, a cryptocurrency trader, has called the situation a “campaign sell-off,” comparing it to the mass sell-off of Bitcoin by the German government, which has been distributing its reserves to the market via OTC desks in recent weeks. According to him, this process began on January 14 and may continue.

Market Impact and Outlook

Coinbase’s negative premium, which tracks the difference in prices across exchanges, suggests a lack of demand for Bitcoin in the US. The premium is now at its lowest level in more than a year, confirming that demand is weak and selling pressure is ongoing.

What’s next? Traders and analysts agree that unless the price recovers above key levels, the market’s next moves could be very uncertain. Many are speculating on a possible return to the $50,000 range, while some technical indicators suggest that the market is still in a consolidation phase.

Conclusion

Bitcoin is going through a turbulent period that could mark the beginning of a new chapter or just a temporary correction. One thing is certain – the market is still under pressure from large sell-offs, and investors should be cautious. Where will the price go next? Time will tell whether it will manage to bounce back, or we will face another fall into the uncertain depths of cryptocurrency volatility.

*This is not an investment recommendation.

The Coingarage Team