Bitcoin falls below key support after weekend crash amid weak technical indicators
Bitcoin tumbles below key support as fear index hits 23.
Bitcoin's price drop over the weekend has rattled traders, as its price movement slipped over 8% and broke below a critical support level, raising fresh concerns about whether the ongoing sell-off is nearing a bottom or about to extend further.
The latest dip coincides with broader financial market stress triggered by new U.S. tariffs, sparking a wave of volatility that spilled into crypto.
Since January, Bitcoin has been struggling to regain upside momentum. Each recovery attempt was met by renewed selling, pushing prices into a pattern of lower lows. While the $80,000 handle held briefly in recent weeks, it eventually gave way over the weekend, exposing the market to deeper downside pressure.
Bearish RSI and fear index at 23 signal bearish outlook for Bitcoin
As of Monday, April 7, Bitcoin extended its slide in the Asian session, reaching a low near $76,700—a level that had cushioned March’s decline. This key support is now under threat, and technical indicators suggest the selling may not be over. The daily RSI remains in bearish territory and is yet to reach oversold levels, indicating room for further downside.
BTC price dynamics (March 2025 - April 2025). Source: Tradingview
Market sentiment, according to the Crypto Fear & Greed Index, reveals Bitcoin's vulnerability to subsequent dips. The latest reading sits at 23, considered as “extreme fear”. This shows widespread nervousness among crypto traders, which often leads to thin liquidity.
Should Bitcoin decisively break below $76,700, the next level to watch is $74,000. This price acted as a major resistance in 2024 before being breached and is now expected to serve as the next key support. If price stages a recovery, $80,000 will act as near-term resistance, and a close above that threshold would be needed to hint at a sustainable reversal. For now, bearish pressure dominates, and traders will be watching closely to see whether $76,700 holds or if $74,000 becomes the next battleground.
Bitcoin bounced off the $81,200 level for the third time in three weeks but failed to hold gains. The weak follow-through on rallies raised doubts about buyer conviction.
