- Bitcoin declined 11.9% over seven days, 10.5% over 14 days, and 17.9% over 30 days.
- Analyst Przemyslaw Radomski warns BTC broke below rising support lines at the 100K level.
- Fear & Greed Index dropped to Extreme Fear, the lowest since the post-Luna period.
Bitcoin faces technical deterioration that could lead to a decline below $75,000, according to analyst Przemyslaw K. Radomski. The analyst has been shorting Bitcoin since it traded around $104,000 and warns the asset is in “deep, technical trouble.”
Bitcoin has declined 11.9% over the past seven days, 10.5% over 14 days, and 17.9% over the past 30 days. The token broke below both rising support lines and verified those moves while also invalidating its advance above the key psychological $100,000 level.
USD Strength Could Accelerate the Decline
Radomski noted this breakdown occurred with minimal strength in the U.S. Dollar. When the dollar rallies, which the analyst expects sooner rather than later, Bitcoin is likely to plunge. When BTC moves below $75,000 to new yearly lows, panic will likely start, leading to sharper declines.
Declining Bitcoin is likely to lead the way for broader market weakness. A dip in BTC would create fear regarding AI stocks, leading to their decline. Once that occurs, it becomes a slippery slope to massive declines elsewhere, as the AI stock bubble keeps indices elevated.
The analyst argued that this time is different for stocks because they clearly invalidated the move to new highs, unlike previous months. If stocks slide and the USD Index soars, the situation would resemble 2008 conditions when declines were both large and sharp.
Despite a positive fundamental outlook, silver and mining stocks declined massively during that period. Declines in copper and commodity stocks were enormous during the 2008 crisis.
Sentiment Indicators Flash Warning Signals
Analyst Milk Road highlighted that two major bear market signals fired simultaneously. Fear & Greed dropped to Extreme Fear, the lowest since the post-Luna washout. Historically, when sentiment reaches these levels, markets tend to reset for 2-3 weeks before breaking into new highs.
Simultaneously, Bitcoin sits right on its 50-week moving average. Closing below this level has sometimes marked bear territory, while other times it has set up the next leg higher. In the short term, the market appears heavy. Medium term, history suggests these levels rarely mark tops.
The combination of technical breakdown, extreme fear sentiment, and testing of the 50-week moving average creates conditions where Bitcoin could experience further downside. Whether the $75,000 level holds or breaks will determine if Radomski’s 2008 comparison proves accurate.
The analyst’s warning comes as Bitcoin invalidated the psychological $100,000 level. This failure to hold round-number resistance often precedes extended corrections as investors who bought near highs exit positions.
Whether Bitcoin executes the predicted decline to $75,000 depends on USD strength, stock market stability, and crypto-specific factors, including ETF flows and regulatory developments that could influence sentiment and demand dynamics.
Related: https://coinedition.com/bitcoin-price-rebound-prospects-as-btc-mined-crosses-95-of-21-million-cap/
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Source: https://coinedition.com/analyst-warns-bitcoin-could-drop-below-75000-compares-current-setup-to-2008/
