Key Takeaways:
- Bitcoin’s recent decline of over 25% from its all-time high of $109,500 will likely be registered as one of the deepest drawdowns in the current bull market cycle.
- The main reason behind Bitcoin’s sudden price decline is the macroeconomic tensions between the various powerhouse countries in the world.
- Per market experts and technical indicators, BTC is poised for steady growth in the coming years, especially during 2029, when it is estimated to reach a high of $305K.
BTC On The Way For Deepest Drawdown
According to Julio Moreno, Head of the Research Department at CryptoQuant, Bitcoin’s recent decline of over 25% from its all-time high of $109,500 will likely be registered as one of the deepest drawdowns in the current bull market cycle. If we take the past cycles into account, the last time Bitcoin registered a strong drawdown was in 2018 when it dropped 83% from its peak and during the 73% correction in 2022.
Compared to these situations, the current decline can be found infinitely less severe than the previous bear markets. This shows that even though the current decline has had a major impact on the crypto industry, it hasn’t yet reached the intensity of the previous cycles. However, various analysts are claiming that BTC might have to put up a strong struggle to quickly turn around the current bearish momentum.
Why is Bitcoin Going Down?
The main reason behind Bitcoin’s sudden price decline is the macroeconomic tensions between the various powerhouse countries in the world. The recent US tariffs also haven’t helped. In fact, there is a high probability of a world trade conflict on the horizon due to them. Because of this, long positions estimated to be worth around $200 million were wiped out in less than 24 hours, demonstrating how much impact these tensions have on the cryptocurrency market.
As a result, the current market sentiment towards Bitcoin is now susceptible to wider economic headlines apart from the technical factors. You can clearly see this when you closely examine Bitcoin’s charts with the global announcement timelines. It has also caused a sense of foreboding among investors, as they wonder how Bitcoin will fit into this unstable economy. If this continues, Bitcoin will have a hard time rebounding until the market conditions and global tensions level off.
Can Bitcoin Stay Above the $70K Support Level?
Per the weekly chart, BTC has tested the 50-day Simple Moving Average (SMA) for the first time since September 2024. During the previous cycles, this situation mostly hinted at the beginning of a bearish market cycle. This time, the immediate interest point below the current price is estimated to be $74K, which is also last year’s all-time high before the bull rally began.
Based on the above data and on the assumption that the $65-69K is the current liquidity level, it can be concluded that losing the $74K value will put immense pressure on the currency. This could also result in further pressure selling, which could put BTC’s price at a $72K level. However, if the buyers retain control, there is a high probability that the lower bounds of the market will not be tested. This could push BTC’s value to an $80K range during this quarter.
BTC Market Performance & Future Outlook: Where Will Bitcoin Be In 5 Years?
As of 8th April 2025, the BTC token is ranked #1 on its market capitalization, estimated to be $1.57 trillion, with a circulating supply of 19.84 million tokens. The coin is listed on major exchanges like Binance and is trading at $79.5K, registering an uptrend of over 3% from the previous day and maintaining a key support level at $74K.
The Relative Strength Index (RSI) is showing a value of 44, just below its neutral level, with the Stochastic Oscillator also in the oversold region. This is a clear indication of an extreme bearish trend for the tokens. However, per the market experts and technical indicators, BTC is poised for steady growth in the coming years, especially during 2029, when it is estimated to reach a high of $305K. For further information on the matter, stay tuned.