Bitcoin’s Worst Slump Since 2022 Drags On… “Rebound Possible Only After Retail Shakeout Ends”

▲ Bitcoin (BTC) Price Decline

Bitcoin (BTC) has extended its longest losing streak of March 2026, sharply cooling investor sentiment as it stands on the brink of breaking a key support level, pushing market fear to extreme levels.

According to cryptocurrency-focused media outlet BeInCrypto on March 4 (local time), Bitcoin has shown sustained weakness for more than a week, marking its longest downturn since 2022. This decline goes beyond a simple price correction, shaking even long-term holders’ confidence, while technical analysis is flashing widespread warnings of further downside potential. In particular, there are growing concerns that if Bitcoin fails to defend a critical psychological price level, it could trigger a broader liquidity crisis across the market.

Analysis of the Relative Strength Index (RSI), a key technical indicator, shows that Bitcoin has clearly entered bearish territory with little sign of a rebound. Although the RSI is approaching oversold levels, buying interest has not recovered, suggesting that market participants do not yet view current prices as a bottom. Experts warn that if Bitcoin loses support at the $62,000 level, a descending channel has formed that could lead to a sharp drop toward $58,000.

On-chain data also indicates warning signals from the Market Value to Realized Value (MVRV) ratio, meaning that unrealized profits among market participants are rapidly shrinking. When the MVRV metric falls below a certain threshold, it increases the likelihood of stop-loss selling accelerating the downturn. Rising Bitcoin inflows to exchanges, coupled with sidelined buying capital, are cited as key factors intensifying downward pressure.

Macroeconomic uncertainty and slowing inflows into spot Bitcoin ETFs are also contributing to the decline. Market observers note that persistent inflation concerns and the possibility of prolonged high interest rates are deepening risk-off sentiment toward speculative assets. As Bitcoin fails to demonstrate defensive strength as “digital gold” and instead moves in tandem with the stock market’s decline, its credibility as a store of value is being put to the test.

Bitcoin’s near-term direction hinges on the emergence of strong buying momentum capable of breaking the current downtrend, with the defense of key support levels serving as the most critical indicator in the short term. Given persistent selling pressure and subdued investor sentiment, market volatility is expected to increase further. Investors are advised to closely monitor changes in technical indicators and capital flows from major institutions while responding cautiously.

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