Bitcoin has plunged below the critical $80,000 level, intensifying a crypto market rout that has wiped out $1 trillion in value. The leading cryptocurrency is now down approximately 25% from its all-time high of nearly $110,000, with analysts warning of potential further declines. Amid concerns of bitcoin price “suppression,” market experts are assessing whether this correction could escalate into a full-scale crash.
Bitcoin Faces Strong Support at $70,000 Amid Market Panic
Technical analysts predict that bitcoin’s next key support level is around $70,000, with this zone acting as a crucial threshold for traders. Ruslan Lienkha, chief of markets at crypto platform YouHodler, noted that “we will only see this level if negative sentiment continues to dominate the equity markets.”
Currently, U.S. stock indices are experiencing consecutive declines, contributing to investor uncertainty. However, some analysts suggest that this could be a temporary correction rather than the end of the broader uptrend.
Bitcoin’s Price Pattern Points to Further Declines
Markus Thielen, founder of 10x Research, highlighted that bitcoin follows a textbook ascending broadening wedge pattern, which forecasts a price drop into the low $70,000 range. Additional concerns are being fueled by U.S. President Donald Trump’s escalating trade tensions, particularly with Canada and Mexico, which have added pressure to the crypto market alongside traditional stock declines.
Fear & Greed Index Hits Lowest Level Since September
Market sentiment has turned highly fearful, with the Crypto Fear & Greed Index plunging to 21, its lowest level in months. Agne Linge, head of growth at decentralized onchain bank WeFi, emphasized that economic instability is causing investors to rotate away from riskier assets like bitcoin.
“With tariffs on Canada and Mexico set to take effect on March 5, mainstream stock markets are reacting to potential economic fallout,” Linge said. “Investors seek stability, and as a naturally volatile asset, bitcoin does not offer that in the short term.”
Will Bitcoin Rebound or Slide Further?
Despite the panic, bitcoin’s long-term prospects remain tied to macroeconomic trends and market sentiment. For now, traders are advised to exercise caution, as further downside risk remains on the table.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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