It’s rough out there for cryptocurrencies as the drop this week is made to look worse on the charts. Bitcoin already broke below its 100-week moving average last week, the first time that has happened since 2023. And adding insult to injury yesterday is when the selloff also took out key support from the March and April 2025 lows.
That now gives sellers the platform to take aim at the next key level, that being the $70,000 big figure.
What is really concerning is that it will be tough to pick at support levels even with the pace of the decline we’re seeing above. A firm break below $70,000 frees up plenty of room for a further drop towards $60,000 next. And the 200-week moving average (blue line) is rather far away, only seen around $58,085 currently.
And compounding on that, it seems like we’re forming a bit of a head-and-shoulders pattern too with a rough neckline near $80,000. If you flip that over, there’s scope for bigger losses to come for Bitcoin. And that spells much danger for cryptocurrencies in general.
But for now, let’s not get too carried away. The latest decline has the makings of a much steeper drop, that especially as risk appetite all around markets are being punished.
The selloff in tech shares and mounting worries surrounding the AI trade is in itself a major concern for market players. And when you pair that with other drivers such as what we’re seeing with cryptocurrencies and perhaps some forced leveraged selling in precious metals, it’s a toxic concoction for risk trades.
So, that could stir up a negative feedback loop in keeping pressure all around as we digest the broader market developments that are in play at the moment.
This article was written by Justin Low at investinglive.com.