Bitcoin has crashed to a new yearly low of $65,000, extending its decline from previous levels. The cryptocurrency has fallen to its lowest level since US President Donald Trump took office in January 2025, with the price briefly slumping below the $72,000 mark - a level last seen nearly 15 months ago. According to reports from Bloomberg, the cryptocurrency slumped to $71,739 in New York on Wednesday, marking a nearly 17% decline in 2026 and representing a nearly 40% fall from its recent highs of over $126,000 in October 2025. The broader crypto market has lost over $460 billion in value the previous week, highlighting the severity of the current decline.
Current technical analysis reveals that Bitcoin is trading in deep oversold territory with the fear and greed index at 12 (Extreme Fear) - historically associated with attractive longer-term entries. According to technical analysis reports, Bitcoin is below all key EMAs with the 20-day EMA more than $13k above spot, the 50-day almost $18k above, and the 200-day over $25k higher. The cryptocurrency is trading below the lower daily Bollinger Band, indicating classic overshoot behavior that typically leads to mean reversion. Daily RSI around 20 is deeply oversold, while the MACD remains deeply negative with a large negative histogram, though momentum is showing signs of flattening.
Despite the bearish sentiment, major institutional players are making significant moves in the market. BlackRock has moved millions of dollars of BTC and ETH to Coinbase Prime, raising speculations about the purpose of the transfer, especially with the current market trend. Meanwhile, Binance has purchased an additional 1,315 BTC for its SAFU Fund as part of converting $1 billion of its SAFU fund. This contrasts with the broader market sentiment, where the prediction platform Polymarket indicates there is an 82% chance that Bitcoin will fall to $65,000 in 2026. Bloomberg analyst Mike McGlone warned that 2026 could mirror a financial crisis similar to 2008, with Bitcoin potentially losing 87% of its value, dropping to $10,000.
The correlation effect is visible across asset classes, with US gold up marginally by over 1% and spot silver climbing 2.1% to $89.88 an ounce. The broader crypto market has shed over 5% of its total market cap in a day, while volume is up more than 23% - classic high-volume liquidation behavior. According to Bloomberg reports, several analysts have echoed warnings about Bitcoin's potential for further decline, with the prediction platform Polymarket indicating there is an 82% chance that Bitcoin will fall to $65,000 in 2026. Bloomberg analyst Mike McGlone warned that 2026 could mirror a financial crisis similar to 2008, with Bitcoin potentially losing 87% of its value, dropping to $10,000.
Technical analysis presents mixed signals with potential for both bullish and bearish outcomes. For the bullish camp, the core idea is mean reversion after capitulation, with key levels including holding above $68k and reclaiming the $70.8k pivot and $72k area. A clean daily close above $72k would signal sellers are running out of ammunition, potentially targeting the $75k–78k region. However, bearish scenarios suggest Bitcoin could face further decline if it fails to reclaim $72k–73k and breaks below $68k, with targets potentially reaching the mid-60k range. The daily ATR near $4,000 indicates elevated volatility, meaning levels like $68k and $72k may be breached and reclaimed multiple times in a single day.