Bitcoin (BTC) continues to struggle under the $100,000 mark, signaling that recent declines might be more than just a temporary market correction. Despite the unsettling nature of these fluctuations, volatility remains a defining characteristic of the cryptocurrency markets, making them inherently attractive. Currently, we’ve seen this volatility work against the bulls. Given the current USDT market data, experts are signaling the potential for further market sell-offs.
Cryptocurrencies Could Face Steeper Declines
Analyzing the USDT market cap graph, a prominent analyst noted the emergence of a death cross in the MACD on the weekly chart, indicating significantly weakened buying pressure. They emphasized that this signal historically predicts 15-21% declines, warning of possible deeper lows. If this trend continues, BTC could dip close to $70,000. However, historical patterns are not always reliable indicators of future outcomes, and such a drop might thrust us into a crisis larger than the FTX or COVID events.
Investors, accustomed to BTC being priced higher, may not fully grasp the extent of the loss, although BTC has clearly weakened. The current decline parallels BTC’s previous retreat from $69,000 to the $30-40,000 range.
Expectations of Further Drops
MicroStrategy experienced a significant drop today, plummeting over 7% to its lowest level since October 2024. The stock has fallen by 55% since October 6, mirroring one of its sharpest declines, comparable to the dot-com bubble burst. This stark decrease is quite significant for MSTR.
Meanwhile, the BTC price hovers around $85,000, slightly below its daily low and under the crucial $88,000 support level. Prevailing market sentiment suggests that prices might close the year, specifically December, at even lower levels. This sentiment also reflects a shift in options markets, where bearish sell options are now dominating, contrasting with last year’s aggressively bullish call options.
DaanCrypto highlighted this change in market sentiment, stating:
What we are witnessing here is the current price calculated with the average monthly volatility. Depending on market sentiment, trends, or potential upcoming catalysts, this price can shift higher or lower.