- Bitcoin risks dropping to $63K if support at $75K–$78K fails, per CryptoQuant.
- Regulatory pressure, including IMF restrictions in El Salvador, fuels bearish sentiment.
- Traders remain divided, with some fearing volatility while others see opportunity.
Bitcoin could drop to $63K if the crucial $75K–$78K support range fails, CryptoQuant analysts warn. This level, the Realized Price minimum band, has historically held firm, but a breakdown could trigger further downside pressure on the market.
CryptoQuant’s warning comes as market uncertainty grows, fueled by a mix of regulatory concerns and macroeconomic factors. The IMF’s pressure on El Salvador’s Bitcoin adoption raises questions about broader institutional resistance.
Adding to the bearish mood are ongoing global sanctions and regulatory crackdowns, which are impacting Bitcoin’s short-term trajectory.
Mixed Signals for Bitcoin’s Price
Despite these challenges, Bitcoin remains resilient at $82,481. Market sentiment, however, appears divided, with some traders bracing for a deeper pullback while others view the volatility as an entry opportunity.
BitMEX co-founder Arthur Hayes believes a correction to $70,000 is possible before BTC resumes its uptrend. He views this as a typical bull market pullback, pointing out that Bitcoin has historically faced 30-40% corrections before hitting new highs.
Related: El Salvador to IMF: Bitcoin Buys To Continue Despite Loan Terms
Hayes previously flagged the rising open interest in derivatives markets, particularly options contracts between $70,000 and $75,000, as a volatility warning sign.
Long-Term Bullish, Short-Term Cautious
Long-term, Hayes is still a Bitcoin bull. He predicts BTC will bottom out and then surge as central banks move to stabilize the financial system. He believes Bitcoin could even hit $1 million in the long run, driven by the collapse of fiat liquidity. Short term, it’s a different story.
Related: BitMEX’s Arthur Hayes Spots Red Flags in Bitcoin Reserve Plan
The key question now is how deep Bitcoin’s correction will go. If BTC holds above $75K, it could signal resilience and fuel a swift rebound toward $85K–$90K. However, if the selling pressure intensifies, $63K could become the next major downside target, matching CryptoQuant’s realized price lower band.
As always, while institutional interest, regulatory changes, and macroeconomic shifts drive market focus, traders should closely monitor key technical levels.
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