Bitcoin prices hit a fresh low following a bout of panic selling by short-term holders, deepening the bear market downturn.
Bitcoin prices tanked to around $73,000 in late trading on Tuesday, its lowest level since November 2024. The fall is significant because it dropped below April 2025 support levels, which were around $74,500, confirming bear market territory.
“Negative momentum is currently extreme as the bear market persists following the October 10 flash crash,” reported Swissblock.
The asset has now crashed 25% in less than three weeks and is down 40% from its all-time high.
“Bitcoin has now crashed over $53,000 in the last 120 days,” observed analyst ‘Bull Theory’ who added:
“Either this is an insane level of manipulation or something huge has broken behind the scenes in crypto.”
The move came as geopolitical tensions escalated again, with Iran seeking a new format for nuclear dialogue with the United States.
“Short-term holders have been capitulating over the past few days,” said CryptoQuant analyst ‘Darkfost’. More than 40,000 BTC have been sent to exchanges at a loss over the past day or so, they added.
“This potential selling pressure appears to have impacted the market today. When large amounts of BTC are sent to exchanges, it is mainly for selling purposes.”
Santiment went into further detail, reporting that wallets with 10 to 10,000 BTC, which hold just over two-thirds of all Bitcoin, have dumped 50,181 units in the past two weeks alone.
However, the world’s largest exchange, Binance, “shows no signs of stress,” reported CryptoQuant.
“Reserves hold near 659,000 BTC, netflows remain normal, and reserve movement sits at just 0.6%, nowhere close to the -12% panic withdrawals seen post-FTX,” it added.
Analyst ‘Sykodelic’ also remained positive, stating that “this section below the $74K lows will provide the springboard for the next macro leg higher.”
“Taking the lows, losing $74K temporarily, pushing everyone over the edge, even the most staunch of bulls… baiting a massive bear trap.”
Bitcoin had returned to trade at $76,500 at the time of writing in early trading in Asia on Wednesday, so the dip below long-term support was short-lived. However, the rest of the crypto market is in meltdown, with total capitalization tanking to a nine-month low of $2.64 trillion.
Ether fell to $2,120 before a minor recovery, and most of the altcoins had crashed to crypto winter lows with very little recovery.
