Bitcoin traders are eyeing another big drop after slipping into a bear market

How traders are in profit?

According to Deribit data cited by Bloomberg, Bitcoin options show that open interest in put options with a $70,000 strike price has reached the second-highest level among all contracts expiring this Friday.

If Bitcoin falls to that level, it would represent an 18% drop from current levels and a 35% drop from its all-time high above $109,000 in January.

"Bitcoin has confirmed a short-term downtrend in its long-term bullish momentum," Katie Stockton, lead analyst and founder of Fairlead Strategists, said in a statement to Business Insider. "We do not rule out a test of secondary support around $73.8k (pre-2024 resistance) before the corrective phase is fully mature."

George Powell, general manager of trading platform NAGA, also believes bitcoin could fall to $70,000, as the token recently broke through key resistance levels at $90,000.

"If key support levels such as $82,000 fail to hold, bitcoin's value could fall further," he told Business Insider in an email.

Bitcoin has entered a bearish trend this week, with the cryptocurrency down roughly 21% from its all-time high of $109,350 in January.

On Thursday morning, the coin was trading at around $85,821.

Meanwhile, Bitcoin’s total market capitalization has fallen to $1.7 trillion, while trading volumes have risen 27% over the past 24 hours, according to CoinMarketCap.

This sell-off appears to have been caused by widespread risk-off activity in the markets, as well as other factors that have weakened crypto investor confidence.

Spot Bitcoin ETFs saw more than $1.1 billion in withdrawals on Tuesday, according to data from Farside, which impacted Bitcoin’s price.

Cryptocurrencies have also seen volatility and weak sentiment after hackers stole $1.5 billion from crypto exchange Bybit last week. Analysts say this could be one of the biggest cryptocurrency hacks ever.

Powell also believes that macroeconomic uncertainty and slow progress in the implementation of the Trump administration’s pro-crypto policies could add to the selling pressure.