Bitcoin Could Plunge if $65,000 Breaks, $60,000 Also at Risk

▲ Bitcoin (BTC), decline, bear market / AI-generated image

Bitcoin (BTC) is flashing warning signals across the market, signaling entry into a full-fledged bear market as its psychological support levels collapse amid persistent price declines.

According to crypto outlet NewsBTC on February 12 (local time), Bitcoin recently failed to reclaim the $70,000 level and has since fallen below $67,000, sharply cooling investor sentiment. CryptoQuant analyst Axel Adler Jr. assessed the current market conditions and warned that Bitcoin holders are moving out of profit zones and entering large-scale unrealized loss territory. Adler Jr. particularly noted that if short-term investors continue capitulation buying, an additional wave of declines may be inevitable.

On-chain data also clearly indicate signs of crisis for Bitcoin. The Market Value to Realized Value (MVRV) ratio for short-term holders has dropped below its baseline, showing that most recent buyers are currently at a loss. This is a typical characteristic of past bear markets, where selling pressure aimed at breaking even tends to suppress price rebounds. Without solid buying support, securing a sustainable support level is expected to become even more challenging.

The market is currently viewing the $65,000 level as Bitcoin’s final line of defense. If this level collapses, there is a high risk that prices could plunge toward the low $60,000 range, signaling the onset of a prolonged downturn. Bitcoin inflows to exchanges have already increased, adding potential selling pressure, while investors are accelerating moves to liquidate assets in preparation for further declines.

As pessimism spreads, retail investor sentiment has moved beyond fear and is approaching extreme fear levels. Positive indicators that once fueled bullish scenarios have lost momentum, and the market now appears focused more on confirming a bottom than on anticipating a technical rebound. Coupled with macroeconomic uncertainties, cautious voices are growing louder, suggesting that it may take considerable time before Bitcoin returns to an upward trajectory.

Bitcoin now stands at a critical crossroads that will determine its long-term trend, with the influx of strong dip-buying demand likely to be a decisive factor in its future price direction. Market participants are concentrating on risk management amid heightened volatility and closely monitoring real-time changes in on-chain data.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice. The publisher is not responsible for any investment losses incurred based on this content.