Bitcoin Bearish Sentiments Intensify as Support Level Now at $68,000

Bitcoin’s next price support level is at $68,000, suggesting it could slip below $70,000. Coinglass disclosed this on X, noting that any further price breakdown could be bearish for the flagship asset.

The post comes amid Bitcoin‘s recent struggles, with the crypto asset dropping from above $80,000 to as low as $72,000 over the past month. The decline, driven in part by macroeconomic pressures and the Binance hack, has led to billions in liquidations. 

Although Bitcoin bounced back today, rising by almost 2% to regain a price above $74,000, many believe this is not a sign of recovery. It appears to be only part of the broader market bounce after days of declining prices rather than a genuine turnaround.

Crypto Market Bearish Sentiment Intensifies

Bitcoin support level below $70,000 reflects the general bearish sentiment around the crypto market. According to CoinMarketCap, the Crypto Fear & Greed Index is at 27/100, in fear territory/100 and getting close to hitting extreme fear, which starts at 20/100.

The metric highlights how several investors and analysts currently see the market. Joao Wedson, the CEO of crypto analytics platform Alphractal, noted that other metrics also back this position.

Citing the Alphractal Alpha Crypto Sentiment Gauge, which analyses sentiment from news and social media, he noted that the gauge is at 15, indicating very bearish sentiment. He further stated that Google searches for crypto-related topics have seen a multi-year decline and visits to Wikipedia pages on crypto topics are near their lowest levels in history. 

"What we’re witnessing looks like a typical, boring accumulation phase, where many altcoins continue to decline or underperform, gradually pushing investors out of the market," Wedson said.

While the analyst is bullish on Bitcoin’s long-term recovery, he noted that the data currently indicate it is time for "resilience, patience, and intelligent accumulation."

Other analysts are also bearish. CryptoQuant’s Analyst Consensus Index dropped from -1.0σ to -1.8σ in just 7 days, as analysts noted that ETF outflows, tech stocks’ struggles, and inflation concerns are driving the decline. 

Bitcoin Now Below Short-Term Basis Cost as Demand Fizzles

Meanwhile, Bitcoin is now solidly below its short-term basis cost despite today’s recovery. This metric, which tells the average price buyers paid for BTC in the past 155 days, is currently $75,600. This means recent buyers are now underwater.

Only 35% of Bitcoin holders are now in profit, compared to almost everyone in September. Two-thirds of holders are now in a loss, while the only major block of holders still in profit is between $62,000 and $66,000, including people who bought around the August low.

Interestingly, Bitcoin’s performance is now worse than stocks’ due to the recent decline. One key factor behind the falling price is the general contraction in demand for BTC. Beyond fading retail interest, institutional demand has also fallen, with the ETFs seeing outflows.

Further evidence is the decline in stablecoin supply, which shows that traders are moving cash out of the crypto ecosystem. According to Glassnode, stablecoin supply has fallen by $14.3 billion in the past 30 days, the fastest shrinking since June 2022, and a sign that investors are not planning to buy more BTC soon.