Bitcoin’s bullish sentiment could be running out, with recent declines potentially just the start.

Bitcoin Slides Below $78K, Analysts Warn of Extended Downtrend

Bitcoin dropped below $78,000 over the weekend, hitting its lowest level since April and triggering new liquidations as liquidity thinned and buyers remained scarce.

Traders told CoinDesk that rallies once supported by corporate demand, notably Strategy’s (MSTR) Bitcoin purchases, have stalled, leaving the market vulnerable to forced selling and derivative liquidations.

For some analysts, Saturday’s decline fits a broader bearish trend. Eric Crown, former NYSE Arca options trader, has argued since late October that Bitcoin is in a sideways-to-downside phase, and optimism for a quick return to new highs — or a rotation from metals back into crypto — represents misplaced “hopium” for bulls.

“It’s been my view since the end of October that BTC is in a sideways and downside phase… I do not think 80K is a macro low for Bitcoin,” Crown, who shares market updates with over 200,000 subscribers, told CoinDesk.

Options market activity reflects growing bearish sentiment. Traders are increasingly betting on Bitcoin falling below $75,000 while abandoning bullish $100,000 calls. On Deribit, $75,000 puts now represent $1.159 billion in open interest — nearly matching the $1.168 billion tied to $100,000 calls.

Technical indicators support this cautious outlook. The monthly MACD crossed down in November, historically preceding extended downturns. The weekly 21 vs. 55 EMA recently turned bearish, often signaling multi-month losses, and the 2025 yearly chart closed as a “shooting star,” a candlestick pattern associated with medium-term reversals.

Bitcoin has also diverged from traditional markets since October, falling while equities held steady — a pattern Crown identifies as late-cycle risk-off behavior. “People generally sell the more speculative assets first,” he noted.

The aftermath of October’s $19 billion crash has further tempered enthusiasm, liquidating leveraged altcoin positions and leaving traders hesitant to re-enter at elevated levels.

While not as extreme as some cyclical bears, Crown suggests Bitcoin could fall further — potentially into the mid-$50,000 to low-$60,000 range — before stabilizing. He sees this range as a potential opportunity for long-term accumulation rather than an end to crypto’s broader cycle