Bitcoin Price News: BTC Could Lose Another 14% As $70K Falters

The week has started on a negative note as Bitcoin (BTC) has retreated by 2.2% in the past 24 hours, dipping once again below the $70K level.

Liquidations have eased in the past 24 hours to $200 million, cause, to be honest, who’s taking longs right now?

A similar amount of short positions have also been blown up during this period, as BTC briefly spiked above $71,000.

A handful of extreme bears may have provided the necessary liquidity for Bitcoin’s next leg down, as market makers targeted this psychological threshold above which a big volume of stop orders may have been placed.

Crypto Fear and Greed Index – Source: CoinMarketCap

Market sentiment is as depressed as it can get, as the Fear and Greed Index plummeted to a record low of 5 recently and has only recovered to 9, a level that is still below the previous all-time low of 11.

Meanwhile, investors withdrew nearly $320 million from Bitcoin exchange-traded funds (ETFs) last week as the market is in full-on risk-off mode.

RSI Posts Lowest Oversold Reading In 30 Months

As we anticipated, BTC hit $60,000 and bounced back as the daily Relative Strength Index (RSI) hit its lowest reading since August 2023.

BTC/USD Daily Chart – Source: TradingView

Bitcoin’s latest behavior is also in line with our prediction for the first quarter of 2026, which sounded a bit extreme back in December when we first hinted at a potential drop to $36,000.

It means a 50% downside risk from where BTC is trading right now, as we did not anticipate that the decline would happen this fast.

This is why we opted to raise that target to $42,000, based on how previous declines have unfolded relative to the behavior of the RSI.

BTC Could Revisit $60K

At current levels, BTC starts to get attractive for long-term buyers after a 45% drop from all-time highs. This could cushion the blow for BTC and start creating a durable floor for future spikes.

Hence, our short-term target continues to be $60,000 – a demand zone that has already been strong enough to add $10K to the price in just one day.

If the price drops to this mark again and buying pressure increases, that could be the “it” moment for BTC that pushes it back to $80,000 or even $90,000 in the near term.

Hence, we have a 14% downside risk in our hands right now, but a potentially attractive opportunity ahead if that happens, as contrarian signals kept piling up in the past week.

BTC/USD Hourly Chart – Source: TradingView

Heading to the hourly chart, we just got a sell signal during the Asian session. However, the price seems to be consolidating still, hovering above the $67,000 daily support.

Ideally, we could expect a move below this mark to confirm a bearish outlook and the beginning of BTC’s next leg down to $60K. That would create an interesting trading opportunity offering a 3x risk-reward ratio with a tight stop loss set at around $69,000.