Bitcoin Drop Accelerates as Bear Market Signals Flash Red

Bitcoin is experiencing intense selling pressure, and the market is bracing for deeper declines ahead. After breaking through critical support levels, BTC has fallen sharply and sentiment has swung decisively negative. A confluence of technical warnings and on-chain metrics suggests the cryptocurrency may be entering a prolonged bear phase similar to past downturns. Currently trading at $69.55K with a 24-hour gain of 0.99%, Bitcoin’s broader structure tells a far more concerning story.

BTC Crashes Below Key Support, Bear Trends Emerge

The latest drop has been brutal. Bitcoin tumbled more than 6% during recent sessions, pressing toward $77,600 and touching ten-month lows. Despite several recovery attempts, bulls have been unable to reclaim the psychologically important $80,000 level. The breakdown of major support zones—particularly around the $80,700 true market mean—has shifted the narrative from correction to bear market territory. With this critical floor abandoned, traders are now pricing in much more significant downside moves.

Price Targets Plunge as Downside Liquidity Zones Emerge

The drop has revealed deeper targets that traders are actively monitoring. Several analysts have pinpointed $74,400 as the next major resistance-turned-support zone, with more extreme scenarios targeting $49,180 if the bear market accelerates. The speed at which these lower levels have entered the conversation underscores how quickly market psychology can deteriorate when key technical floors give way. What was once considered “safe” support has evaporated almost overnight.

Technical Bears Align: The 21-Week EMA Warning

One of the most troubling developments is Bitcoin’s break below the 21-week exponential moving average—a historically significant level that has often preceded major bear market phases. This crossover is particularly alarming because it’s repeating a pattern last seen in April 2022, which preceded an extended bearish decline. According to analysis from tracking firms, Bitcoin has already fallen approximately 17% since crossing below this moving average, dropping from $90,000 to the current mid-$70K range. Historical precedent suggests that once this level breaks and holds below it, structural bear markets often take hold for extended periods.

Short-Term Relief Possible, But Don’t Count on It

Despite the overall bearish setup, some traders are watching for a potential rebound toward the CME futures gap near $84,000. CME gaps frequently act as price magnets, drawing price action toward them before continuing in the dominant trend. A brief bounce toward this zone is certainly possible in the coming weeks. However, any relief rally should be treated with extreme caution unless Bitcoin can convincingly reclaim the $80,000 support zone and critical moving averages. Without major structural recovery, any bounce is likely just temporary.

On-Chain Signals Warn of Extended Bear Regime

Looking beneath the surface, on-chain data paints a bleak picture for sustained recovery. Bitcoin is now trading below the realized price—the average cost basis of coins last moved 12-18 months ago. Historically, when BTC breaks below realized price and remains trapped there, markets often transition from normal corrections into structural bearish regimes. In the current environment, realized price is acting as overhead resistance, meaning that as holders attempt to exit at breakeven, rallies consistently fail. The combination of negative profitability, extended time below cost basis, and slowing on-chain growth aligns with previous extended bear markets.

What’s Next: Navigating the Drop and Bear Risks

The situation is sobering. Bitcoin’s drop through multiple support layers, breaking of the 21-week EMA, and on-chain deterioration all point toward a bear market regime that could extend for months. While a short-term bounce toward $84,000 remains possible, the structural backdrop suggests that such moves should be viewed as selling opportunities rather than the start of a recovery.

The broader trend remains firmly bearish. Market participants are discussing scenarios that seemed unthinkable weeks ago, including moves toward sub-$50,000 levels if historical patterns continue to repeat. Risk management is paramount in this environment. Traders should protect capital, avoid overextending on rallies, and remain prepared for an extended bear phase.

This is not financial advice, merely a technical and on-chain perspective of what the data suggests about Bitcoin’s current positioning.