Bitcoin (BTC-USD) held steady around $78,000 per token on Monday, but some strategists warned that the weekend’s sharp decline may not be over yet as investors remain reluctant to buy on the spurts.
The world’s largest cryptocurrency plunged on Saturday, hitting its lowest level since April last year and marking its fourth consecutive month of losses.
The decline coincided with President Trump’s announcement Friday that he would select Kevin Warsh to lead the Federal Reserve when Chairman Jerome Powell’s term ends in May, a candidate the market sees as hawkish.
Ether (ETH-USD) and other digital tokens also fell along with gold (GC=F) and other metals, plunging on Friday and extending losses on Monday.
Bitcoin’s next support level is $73,000, and “current flows suggest a significant shift in sentiment,” 10X Research strategists wrote in a note Sunday night.
The firm’s strategists noted that flow and positioning data shows “investors are not yet in a position to buy on the edge.”
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“While sentiment and technical indicators are approaching extreme levels, the broader downtrend remains intact,” the researchers wrote. “If there is no clear catalyst, there is little urgency to intervene.”
The firm noted that traders are still focused on deleveraging and unwinding positions rather than preparing for a typical snapback rally.
The pressure on digital assets reflects broader vulnerabilities across the cryptocurrency market. Aside from a brief rally last month, Bitcoin has struggled since October, when whale sales and forced liquidations swept through the industry.
Bitcoin is down more than 12% year-to-date after a disappointing 2025. Ether is also down 23% since the beginning of the year. The total market value of cryptocurrencies has fallen by about $1.7 trillion, or about 39% from its peak last year, according to 10X Research.
Sean Farrell, head of digital assets at Fundstrat, said the mid-$70,000 region stands out as a logical support zone, given that around $74,000 was the March 2024 intraday high and April 2025 intraday low of about $74,000 during the tariff-driven decline.
“All else being equal, the levels reached over the weekend and the degree of capitulation observed create a more attractive near-term risk/reward,” Farrell said in a note Monday.
The strategist said the decline may justify a “modest” rollout of dry powder, but cautioned that the situation remains on the downside as “there are ample traditional market positioning risks that could negatively impact the crypto market.”