This post was originally published on this site.
Bitcoin (BTC-USD) steadied near $78,000 per token on Monday, but some strategists cautioned that its sharp sell-off over the weekend may not be over as investors seemed reluctant to buy the dip.
The world’s largest cryptocurrency dropped sharply on Saturday, touching its lowest levels since last April and notching a fourth straight month of losses.
The move lower coincided with President Trump’s announcement on Friday selecting Kevin Warsh to lead the Federal Reserve when Jerome Powell’s term ends in May, a nominee markets view as hawkish.
Ether (ETH-USD) and other digital tokens also slid alongside gold (GC=F) and other metals, which crashed on Friday, with losses extending on Monday.
With bitcoin’s next support level at $73,000, “current flows suggest sentiment has shifted meaningfully,” 10X Research strategists wrote in a note on Sunday night.
The firm’s strategists pointed to flow and positioning data, which indicates “investors are not yet positioned to buy the dip.”
Read more: How to navigate a crypto meltdown
“While sentiment and technical indicators are approaching extreme levels, the broader downtrend remains intact,” the researchers wrote. “In the absence of a clear catalyst, there is little urgency to step in.”
The firm noted traders remain focused on deleveraging and position unwinds rather than on preparing for a typical snapback rally.
Pressure on digital assets reflects broader fragility across the crypto market. Aside from a brief bounce last month, bitcoin has struggled since October, when whale selling and forced liquidations swept through the industry.
Bitcoin is down more than 12% year to date after a disappointing 2025. Ether has also plunged 23% since the start of the year. Altogether, cryptocurrencies have lost roughly $1.7 trillion in market value, or about 39% from last year’s peak, according to 10X Research.
Fundstrat head of digital assets Sean Farrell said the mid-$70,000 region stands out as a logical support zone, given that around $74,000 was the intraday high in March 2024 and the intraday low in April 2025 during the tariff-driven sell-off.
“All else equal, the levels reached over the weekend and the degree of capitulation observed create a more attractive near-term risk/reward,” Farrell wrote in a Monday note.
The strategist said the pullback could warrant a “modest” deployment of dry powder but warned that conditions are still trending lower, with an “ample amount of positioning risk in traditional markets that could adversely affect crypto markets.”