Bitcoin investors may need to brace for more volatility following this week’s sharp sell-off, according to Wolfe Research.
The world’s largest cryptocurrency is down nearly 21% from its all-time high, dropping below $90,000 for the first time since November amid broad risk-off sentiment in financial markets.
Bitcoin is currently at a crucial point, according to Wolfe analyst Read Harvey. “We could be moving back into the mid-to-low $70,000 range,” Harvey said in a research report. He noted that $91,000 had previously acted as a strong support level in recent months. “With that level now firmly out of the picture, anything less than another V-shaped oversold reaction would send a very bearish message. It’s not good for now,” Harvey said.
Harvey warned that if downward pressure continues and bullish sentiment weakens further, Bitcoin could fall back to levels seen before the post-election breakout.
Bitcoin’s slide to a three-month low occurred in the absence of a clear catalyst. Following the election of pro-crypto President Donald Trump, optimism about his crypto-friendly stance has increased, especially after his widely anticipated executive order on digital assets. However, concerns about a slowing economy and a broad sell-off in stocks have contributed to Bitcoin’s recent decline.
“It’s clear that there are ups and downs not just in global equity markets but also in commodities and crypto,” Harvey said. “Uncertainty is at the forefront of investors’ concerns and risk appetite is rapidly diminishing.”
Despite the recent pullback, Bitcoin is up 23% since the election but has lost 8% so far in 2025.
*This is not investment advice.
