Bitcoin Plunges Below $73K, Analysts Warn of Prolonged Bear Market

Data from CoinGecko confirms a severe downturn across the cryptocurrency market. Bitcoin (BTC) fell to approximately $72,900, marking a 4% decline over 24 hours and a roughly 15% drop over the past seven days. However, the sell-off has been notably more pronounced for other major digital assets. Ethereum (ETH) has lost a staggering 25% of its value in the same week-long period, while XRP has fallen approximately 17%. This synchronized decline underscores that the current pressure is not isolated to Bitcoin but represents a systemic loss of confidence impacting the broader crypto asset class.

The severity of the move has shifted market dynamics. Augustine Fan, a partner at the Hong Kong-based crypto options platform SignalPlus, told Bloomberg that trader confidence has sunk to “extremely low levels,” a key factor fueling the ongoing sell-off. He observed that market volatility, which had been subdued for nearly a year, has finally spiked as participants rush to hedge their exposures. According to Fan’s assessment, markets are now firmly operating under bear-market conditions, a sentiment that is reshaping trading strategies and risk appetite across the board.

Several prominent analysts are cautioning that Bitcoin’s weakness may not be a short-term phenomenon. Alex Thorn, head of research at Galaxy Digital, interpreted recent price action as a signal that Bitcoin “may continue to drift lower in the coming weeks or even months.” He provided a concrete technical target, pointing to the 200-week moving average, which is currently situated near the $58,000 level, as a potential area of significant support—or further downside.

Thorn also highlighted a specific on-chain dynamic contributing to near-term uncertainty: a noticeable supply gap between the $70,000 and $80,000 price range. This gap, where relatively few Bitcoins were previously acquired, can lead to thinner liquidity and exacerbate price swings, adding to volatility as the market searches for stable footing. This technical and on-chain analysis suggests the path to recovery may be fraught with instability.

Further evidence of a entrenched bearish outlook comes from derivatives markets. Market analyst DarkFost noted that funding rates on the Binance platform have moved into what he described as an “extreme zone.” This condition signals a pronounced buildup of short positions, indicating that a growing consensus among active traders is betting on continued price declines rather than a swift rebound.

In the wake of the sell-off, technical analysts are mapping key levels that will dictate Bitcoin’s near-term trajectory. DarkFost identified two crucial thresholds now in focus: immediate resistance around $74,000 and major support near $69,000. A failure to hold above the $69,000 support level could open the door to a more rapid descent toward the lower targets discussed by analysts.

As of the latest data, Bitcoin has managed a fragile recovery from Tuesday’s lows, briefly trading back above $75,000. However, this bounce is occurring within a clearly damaged technical landscape and against a backdrop of overwhelmingly negative sentiment. The convergence of bearish analyst commentary, extreme short positioning on platforms like Binance, and breakdowns in major altcoins like Ethereum and XRP creates a formidable headwind. For traders and investors monitoring charts on TradingView, the immediate challenge is whether Bitcoin can consolidate above key supports or if the bear-market conditions, as defined by SignalPlus’s Augustine Fan, will push prices toward the $58,000 200-week moving average cited by Galaxy Digital’s research team.