Bitcoin Price Prediction – BTC Could Drop to $70K as Key Support Broken

Highlights:

• Bitcoin headed for $70k as critical support levels broken
• Sustained bearish sentiment driven by macro uncertainty
• Analysts expect a rebound to new highs if $70k holds

Bitcoin has dropped below $80,000 for the first time since November, dropping 7.61% in one day and losing much of the value it gained in recent months. Bitcoin trades at $79,724, a steep decline since its all-time high of $109,000 in January.

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Investors Prepare for Further Bitcoin Price Decline

Many investors were expecting Bitcoin to find some support at $82,000. Now that it has failed to do so, there is rampant speculation that it will drop down to $70,000.

Well-known investors have shared their opinions on the decline. For instance, a market analyst, DMac, posted on X that buyers trying to catch the dip are being hit by piling losses. He notes that Bitcoin could drop further to prices as low as $70,000 but rebound to new highs.

The 365-day New-Lows (NL) on the Crypto Top 200 Index spiked to 24% this week—the second time this month. While that sounds bearish, remember: true bear markets often see NL's extend over 50% (red circle). In crypto bull markets (despite limited index history), levels around… pic.twitter.com/0D9zVPWYoB

— Jamie Coutts CMT (@Jamie1Coutts) February 26, 2025

Economic Instability Driving Bitcoin Sell-off

Market analysts point out that the worrying Trump tariffs and market uncertainty are the most potent recent causes of Bitcoin’s decline. This uncertainty has fostered even more risk-averse behavior from investors, who are now moving away from volatile assets such as crypto into more stable investments.

There has been a correlation between Bitcoin price movements and political events in the US. Bitcoin rose in value in November because of the optimism surrounding Trump’s election, as he is known for being pro-crypto. Since his inauguration on January 20, however, Bitcoin has fallen in value by around 26%, which casts doubt on the impact of his policies on the crypto industry in the long term.

Crypto keeps crashing hard! ☠️😂

The so-called "Trump effect" is fading fast—Bitcoin is already down 20% from its all-time high and just keeps falling.

Anything built on Trump's hype is just smoke and mirrors, destined to collapse.

Because #LoserDonald never truly delivers. pic.twitter.com/iKsQs88a2F

— scientific realm 🇺🇦 (@scientificrealm) February 26, 2025

Outside the broader economic issues, the latest $1.5 billion hack on the ByBit crypto exchange has also put new weight on the crypto market. This security issue has compromised investors’ confidence in the market and added to the uncertainty in an already highly volatile market.

Record Outflow of Bitcoin ETFs Add to the Selloff

Adding to the selloff is the sudden increase in Bitcoin ETF outflows. Bitcoin ETFs saw record outflow this week as investors cashed over $1 billion on Tuesday alone. This outflow marks the highest single-day loss since the spot Bitcoin ETFs began trading in January. 

Institutional investors seem to be losing confidence quickly, as shown by the decline in The Fidelity Bitcoin Fund and the iShares Bitcoin Trust ETF. Such selling pressure is observed as focus shifts to more traditional assets, with stock ETFs, such as the Invesco QQQ Trust and SPDR S&P 500 ETF Trust, witnessing an almost $7 billion inflow in a single session.

Analysts Bullish on Bitcoin Long-Term

Despite the selloff, analysts believe Bitcoin’s future is bright. Katie Stockton, founder of Fairlead Strategists, explained that Bitcoin has not fulfilled the prerequisite conditions of a short-term downtrend but has confirmed a breakdown. She suspects there might be a recovery attempt at around $73,800.

Geoffrey Kendrick from Standard Chartered is even more optimistic, predicting that Bitcoin will hit $200,000 before the end of this year and $500,000 during Trump’s term. It shows that investors don’t expect the short-term selloff to last long. 

Technical Analysis – Bitcoin Price Bears Gain Momentum

Bitcoin bears appear to be in control as all support levels between $94,000 and $90,000 have all been broken.

There also seems to be minimal support in the short term, save for some minor support at $71,168. If the $71,168 support is broken, Bitcoin could drop to $54,948 in the medium term. Such a move would also mark the beginning of a bear market.

Recap

Some traders are still hopeful for a recovery, but the lack of certainty and sluggish implementation of pro-crypto policy under Trump’s rule is expected to lengthen the downturn. Analysts believe Bitcoin’s price will struggle for now unless a confidence-restoring catalyst emerges. In the short term, there is growing consensus that a drop to $70k is possible.

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