Bitcoin Price Crashes Again – Is $70,000 Next?
The cryptocurrency market witnessed a sharp drop in the bitcoin price today, following a brief rally that saw the price test $89,000 before sliding to $84,544. This sell-off marks the continuation of a downward trend that has persisted for the past month. Despite losing 2% over the last 24 hours, bitcoin remains 5% below its seven-day high of $89,220, with trading volume reaching $56 billion and a market capitalization of $1.69 trillion. The circulating supply stands at approximately 19.96 million BTC out of a total of 21 million.
The recent drop in price came after a short-lived surge triggered by the release of new Consumer Price Index data in the U.S. Inflation rose by 2.7% year-over-year in November, below expectations, with core CPI (excluding food and energy) falling to 2.6%, the lowest since early 2021. This news led to a temporary spike in the bitcoin price, as traders interpreted it as a potential signal for looser Federal Reserve policy in 2026. However, the rally was short-lived, with the price failing to break above $90,000 and subsequently dropping back down.
One of the key factors dragging down the bitcoin price is the decrease in demand from U.S.-listed spot Bitcoin ETFs, which have seen net redemptions recently. This has removed institutional support that previously helped stabilize the price, making it harder to sustain breakouts above $89,000. Additionally, other economic indicators, such as rising unemployment and mixed signals in the labor market, add to the uncertainty surrounding Federal Reserve policy.
From a technical standpoint, the bitcoin price is currently consolidating rather than trending, with resistance forming just below $90,000. Analysts at Bitwise have suggested that bitcoin may break its historical four-year cycle and reach new all-time highs in 2026 with lower volatility and reduced correlation to equities. The Bitcoin Fear and Greed Index currently sits at 17/100, indicating extreme fear in the market, which could present buying opportunities for contrarian investors.
Looking ahead, technical analysts predict that if the bitcoin price falls below the $84,000 support level, it could test the $72,000 to $68,000 zone. Bears are currently in control, and a break below $84,000 could lead to faster declines towards $70,000. Resistance levels are seen between $94,000 and $118,000, with bulls needing substantial buying volume to break above these levels.
In conclusion, the short-term momentum favors sellers, with bears well-positioned to push prices lower in the coming weeks. At the time of writing, the bitcoin price stands at $84,812, with trading volume at $56 billion and a market capitalization of $1.69 trillion. The cryptocurrency market remains volatile, with various factors contributing to the fluctuations in the bitcoin price.
