Bitcoin has extended its recent losses, now trading below $72,000 after falling more than 6% in the past 24 hours. This marks a nearly 30% drop from its quarterly high and brings BTC back to levels not seen since late 2024. Attempts at recovery earlier in the week were short-lived – a brief move above $79,000 quickly reversed, and momentum has remained negative since.
The decline has erased billions in market value, with the broader crypto market also under pressure. Ethereum is down nearly 30% in a week, while Solana has broken below the $100 level.
Market-wide liquidations have accelerated, with over $875 million in leveraged positions wiped out in the past 24 hours alone. Risk-off sentiment continues to dominate amid macroeconomic uncertainty, including geopolitical tensions and a broader sell-off in U.S. tech stocks.
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Technical Indicators Show Oversold Readings
As selling pressure intensifies, several technical indicators suggest the market may be entering oversold territory. The Relative Strength Index on the daily chart has dropped to 21, while the shorter-term RSI(7) stands at 14 – both deep oversold levels that often precede short-term price bounces.
Bitcoin has also broken below its lower Bollinger Band, which can indicate that downward momentum is stretched.
Price is now approaching the key support zone around $70,140 If this area holds, it could act as a base for a rebound. Any recovery would likely face resistance first near $79,450 and then around $86,758, corresponding to the 78.6% and 61.8% retracement levels.
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Technical Picture Remains Cautious
While technical indicators point to potential for a short-term bounce, the broader downtrend is intact. Price action remains below key moving averages, and volatility has intensified. Reclaiming lost support zones would be necessary to shift the trend, but as of now, bearish momentum continues to dominate.
