Bitcoin news: 4-month low imminent as panic-selling escalates
Bitcoin slides to four-month low as panic selling accelerates.
Bitcoin’s price action has taken a sharp turn, testing critical floor levels as selling pressure mounts.
After hitting an all-time high of $109,000 in January, the cryptocurrency has been in a steady decline, recently reaching a four-month low of $76,600.
Although Bitcoin rebounded over 6% yesterday to approach the March opening price of $84,400, the broader trend remains under pressure, with key indicators pointing to further downside risk.
On-chain analytics firm Glassnode reports that investors who bought Bitcoin near its peak are now panic-selling as prices decline. This wave of selling has triggered significant loss realization and a moderate capitulation event. Short-term holders, those who have held Bitcoin for less than 155 days are particularly affected, with their realized purchase price ranging between $71,300 and $91,900. Despite many of these investors already “deeply underwater,” Bitcoin could slide further toward the $70,000 zone if selling persists. Glassnode suggests this level could act as a temporary floor in the near term.
Bitcoin price dynamics (Feb 2025 - March 2025). Source: TradingView.
Bitcoin price struggles near $80,000 psychological level amid bearish RSI signal
As of Wednesday, March 12, Bitcoin is down 2%, trading near $81,300, bringing it closer to the key $80,000 psychological level. The market remains cautious given that long-term and short-term RSI readings are both in bearish territory. If Bitcoin fails to hold above $80,000, a break below this level could open the door for another four-month low. Conversely, if buyers step in, resistance is expected at $84,400, a level reinforced by the 50-day EMA.
Bitcoin’s next move hinges on whether selling pressure intensifies or stabilizes. If the market can absorb the recent wave of capitulation, a relief bounce could follow. However, sustained weakness in key support zones could keep the downside risk in play, with $70,000 as a possible target.
Speculation about Trump pressuring the Fed for rate cuts contributed to market volatility. Bitcoin dropped to $77,000 before rebounding toward $80,000, which now acts as resistance.
