Bitcoin dropped to around $73,000 in late trading on Tuesday, its lowest level since November 2024. The decline broke the April 2025 support level of approximately $74,500, confirming that the asset is deep in bear market territory. Swissblock reported that negative momentum remains extreme following the October 10 flash crash. Bitcoin has now fallen 25 percent in less than three weeks and is down 40 percent from its all-time high.
Analyst ‘Bull Theory’ noted that Bitcoin has lost more than $53,000 in the past 120 days, suggesting either extreme market manipulation or major underlying issues within the crypto sector. The drop coincided with renewed geopolitical tensions as Iran seeks a new format for nuclear talks with the United States.
Short-Term Holders Contribute to Selling Pressure
CryptoQuant analyst ‘Darkfost’ highlighted that short-term holders have been selling aggressively over the past few days. More than 40,000 BTC were moved to exchanges at a loss in the last day, contributing to downward pressure. Santiment reported that wallets holding between 10 and 10,000 BTC, which control over two-thirds of all Bitcoin, have sold 50,181 BTC in the past two weeks.
Despite this, Binance shows no signs of stress. CryptoQuant noted that exchange reserves remain near 659,000 BTC, netflows are normal, and movements represent only 0.6 percent, far from the -12 percent panic withdrawals seen after FTX collapsed. Analyst ‘Sykodelic’ suggested that the drop below $74,000 could set the stage for the next major upward move, describing it as a potential bear trap designed to push weak hands out of the market.
Total Market Capitalization Hits Nine-Month Low
By early Wednesday trading in Asia, Bitcoin had recovered slightly to $76,500, making the dip below long-term support brief. The broader crypto market, however, remains under pressure. Total market capitalization has fallen to a nine-month low of $2.64 trillion. Ethereum dropped to $2,120 before a minor rebound, and most altcoins have returned to crypto winter lows with minimal recovery.
