Where is bitcoin headed now?
The sentiment in the crypto market is at a low, as indicated by the Crypto Fear and Greed Index, which has fallen from 55 (Neutral) to 21 (Extreme Fear) in less than a week.
The hacking of Bybit last Friday shook investor confidence, compounded by the increasing uncertainty over tariffs on Mexico and Canada, which will finally come into effect and have generated greater unease in the markets.
Bitcoin had maintained its support at $92,000, a level that had been held since November 2024. However, once this support was broken, it is likely that a cascade of position liquidations was triggered, increasing the downward pressure on the price.
If we analyze previous cycles of bull markets, there could still be more declines. In these scenarios, corrections of 25-35% are common before finding a bottom and continuing the upward trend.
Currently, bitcoin has fallen 20% from its all-time high of $109,300. A correction of 35% would place it around $70,000. This does not mean that the price has to necessarily reach that level, but it is a possibility.
While it is understandable that investors feel uncertain about such large moves in dollars, it is important to remember that corrections are normal in any financial asset. Additionally, bitcoin is still up 70% compared to the same date last year.
