Bitcoin is skating on thin ice as it hovers around the critical $75,000 support level. A deeper correction is on the table, and analysts warn that if this level breaks, the cryptocurrency could slide further—possibly toward $70,000, according to Cointelegraph. Bitcoin has already dropped over 6.5% in 24 hours, sinking below $78,197 for the first time since November 2024.
Macroeconomic fears fuel Bitcoin’s sell-off
Investors are rattled by mounting global trade concerns, particularly the potential trade war between the U.S. and China. The latest catalyst? U.S. President Donald Trump’s import tariffs, which have intensified fears of economic instability. “Bitcoin’s drop below $80,000 amid investor fear from Trump’s tariffs and market unrest points to a correction likely hitting $76,000-$78,000 this week,” said Ryan Lee, chief analyst at Bitget Research, in a statement to Cointelegraph.
Will Bitcoin Break Below $75K?
The $75,000 level is now the line in the sand. If Bitcoin drops below it, nearly $900 million in leveraged long liquidations could be triggered across exchanges, according to CoinGlass data. While some analysts suggest Bitcoin could hold above $75,000 due to institutional dip buying, Lee cautioned that a drop to $70,000 is still possible if market sentiment worsens: “A further plunge to $70,000 is possible but less probable by March 2 without a significant new shock.”
Historical Patterns Hint at More Downside Ahead
Bitcoin’s correction isn’t out of the ordinary. Crypto analyst Rekt Capital pointed out that the current -25% pullback is in line with historical trends. “Depth-wise, this current -25% Price Discovery Correction has been shallower by standards of history though still quite close to the -30% mark,” he wrote in a Feb. 27 post on X. If past cycles repeat, Bitcoin could face two more weeks of downward pressure before finding stability.
Can Bitcoin Defy the Odds?
Despite the grim outlook, some believe a sharp plunge to $70,000 isn’t imminent. With big players like Michael Saylor’s Strategy (previously known as MicroStrategy) (MSTR) continuing to accumulate Bitcoin, dip-buying from institutions might provide a buffer.
However, unless Bitcoin holds $75,000 convincingly, the coming days could be a test of nerves for investors. At the time of writing, Bitcoin is sitting at $81,784.27.
