Key Highlights:
- Bitcoin has fallen to $74.5K, approaching important long-term support levels.
- Ethereum fell below $1,380, its lowest since late 2023.
- Short-term holders lost about $1 million each hour due to panic selling.
The crypto market has faced significant pressure following tariff tensions, leading to a sharp pullback. Bitcoin dropped to $74,500, while Ethereum sank to $1,380 amid this decline.
The recent price drop pushed Bitcoin below key moving averages, signaling weaker market momentum. Short-term holders faced significant losses, further amplifying market volatility.
Crypto Market Faces Downward Pressure
Both Bitcoin and Ethereum have fallen sharply from the tariff news. After a strong rally earlier in the year, BTC’s price dropped to $74,500, a local low. Also, Ethereum fell to $1,380, its lowest level since late 2023.
During the last rally, Bitcoin reached highs above $90,000 and Ethereum around $4,000. Both assets have since lost a large part of their gains.
The chart of their movements showed a clear downward trend from early 2025. This indicated a broad uncertainty in the crypto market.
The decline followed shortly after the tariffs were announced. This could be a reaction to external macroeconomic pressure.
Bitcoin Trading Below Key Averages
Bitcoin price is analyzed against major moving averages to assess its performance. This comparison provides insights into past investor sentiment in the crypto market.
The 111-day moving average stood at $93,000, the 200-day at $87,000, and the 365-day at $76,000. When writing, BTC traded below the first two and just above the 365-day average.
This structure was weakening short- and medium-term momentum. If Bitcoin’s price is below these averages, many traders and investors will be underwater in their positions. A deeper crypto market downturn may be confirmed if Bitcoin falls below the 365-day mark.
These averages also act as support or resistance levels. When the price approaches the 365-day average, long-term buyers may take notice and stabilize the market in the short term.
Short-Term Buyers Are Realizing Losses
Furthermore, crypto market sentiment can be gauged by short-term holder behavior. At press time, the realized price for short-term holders is $93,000. Bitcoin has been trading below this level, and many recent buyers are holding at a loss.
Also, there are upper and lower deviation bands from the realized price. The low band is at $72,000, and the high band is near $131,000, a level reached during the rally. Bitcoin has neared this lower band.
This positioning can be stressful for short-term participants, especially those who joined during the last phase of the rally. As the price keeps falling, this could cause more selling. Moving ahead, this could also fuel the downward trend even more.
Long-Term Support Levels Tested
Meanwhile, longer-term metrics can help you see where market participants will likely have built up their holdings. Based on actual transaction data, the True Market Mean was about $65,000. A little higher at $71,000 is the Active Realized Price, which looks at active wallets.
However, both of these levels were still below Bitcoin, only by a small margin. These indicators showed that the current price remained within a long-term investor’s support zone.
If the price goes below, it could indicate further market weakness. This may cause this group to become wary as well.
Conversely, long-term confidence could be maintained if Bitcoin stays above these levels. Many investors use these indicators to determine whether the asset trades within a normal historical range.
Growing Losses by Recent Buyers
Moreover, realized losses across the network have shot up sharply since early March. The data shows that the most affected group is the one that has Bitcoin between one week and three months old.
Most of these are newer investors who bought into the recent uptrend. At the peak of losses around Feb 27, some periods experienced realized losses of over $1 Million per hour.
These spikes are a wave of panic selling or stop-loss triggers from those who could not withstand any further downside. This is a signal that optimism is turning into caution.
The crypto market may move to a more defensive phase as more investors move to lock in losses. More volatility could follow if selling continues and key support levels are breached.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
