Bitcoin: where does it go now?

Sentiment in the crypto market is on the floor at this moment in time, as signified by the Crypto Fear and Greed Index, which has dropped from a level of 55 (Neutral) to 21 (Extreme Fear) in less than a week – by Simon Peters

The Bybit hack last Friday shook investor confidence, as well as escalating trade concerns with tariffs on Mexico and Canada going ahead, causing some uncertainty in markets.

Bitcoin had been holding up relatively well until the $92,000 level – which had been holding as support since November 2024 – was broken. I suspect this caused a cascade of liquidations of positions to occur, adding further downside pressure on the price.

If previous bull markets are anything to go by, the price could still drop further from here. We generally see retracements of 25-35% in bitcoin bull markets before a base is found and the next leg higher begins.

We’re currently down 20% from the $109,300 all-time high. A 35% drawdown would put the price at $70,000. Not saying the price is definitely going to drop as far as that, but it’s possible.

Whilst I understand that investors may feel fearful due to the large price movements (in USD nominal amounts), retracements in the price of any asset class or instrument are normal and expected, and we should remember we’re still 70% or so up from this time last year.

Investors with cash on the hip and who have a long-term conviction in bitcoin may see this as an opportune time to add further to their overall holdings.

Simon Peters is crypto analyst at investment platform eToro