Bitcoin Risks Further Slide as Momentum Weakens Below Key Support
Bitcoin has stabilized near $74,500 after a sharp decline but remains vulnerable, with momentum still pointing lower and resistance constraining upside moves. Analysts warn that a sustained drop below $74,000 could lead to deeper losses across the crypto market, while a move above $80,000 may bring short-term relief. Market participants are monitoring institutional buying, global economic signals, and Federal Reserve policy for potential support. Caution is widespread, with concerns about tightening liquidity and macroeconomic risks, including potential geopolitical conflicts and uncertainty over Federal Reserve leadership. Michael Burry warns that a further drop below $70,000 could cause institutional losses and capital tightening, with Bitcoin miners at severe risk if prices fall toward $50,000. Technical analysts emphasize that $74,000 is a key psychological and structural support; a breach might prompt institutional outflows and intensify selling. Prediction markets imply notable downside probability, with increasing bearish sentiment among traders. Recovery depends on clearing leveraged positions and renewed spot buying, but current conditions suggest ongoing uncertainty and possible further declines until macro and technical factors improve.
