The weekend drop suggests Bitcoin’s optimism for bulls—its ‘hopium’—might be fading fast.

Bitcoin’s Weekend Drop Sparks Liquidations as Analysts Warn of Prolonged Downtrend

Bitcoin tumbled below $78,000 over the weekend, hitting its lowest level since April and triggering fresh liquidations as liquidity thinned and buyers remained scarce.

Traders told CoinDesk that rallies once fueled by corporate demand, particularly from Strategy’s (MSTR) Bitcoin purchases, have stalled, leaving the market vulnerable to forced selling and derivative liquidations.

Saturday’s slide fits a broader bearish pattern that has been developing for months. Eric Crown, former NYSE Arca options trader, has argued since late October that Bitcoin is in a sideways-to-downside phase. Optimism for a return to new highs, or a rotation from metals back into crypto, represents misplaced “hopium” for bulls.

“It’s been my view since the end of October that BTC is in a sideways and downside phase… I do not think 80K is a macro low for Bitcoin,” Crown, who posts market updates to over 200,000 subscribers, told CoinDesk.

The options market reflects growing bearish sentiment. Traders are increasingly betting Bitcoin will fall below $75,000, abandoning bullish $100,000 call positions. On Deribit, $75,000 puts now represent $1.159 billion in open interest — nearly matching the $1.168 billion locked in $100,000 calls.

Technical indicators reinforce Crown’s outlook. The monthly MACD crossed down in November, historically preceding extended downturns, while the weekly 21 vs. 55 EMA recently turned bearish, typically signaling multi-month losses. The 2025 yearly chart also closed as a “shooting star,” a candlestick pattern often linked to medium-term reversals.

Bitcoin’s divergence from traditional markets since October adds to the bearish case. While equities held steady, BTC fell — a pattern Crown sees as typical of late-cycle risk-off behavior. “People generally sell the more speculative assets first,” he noted.

Crown also highlights the aftermath of October’s $19 billion crash, which liquidated many leveraged altcoin positions and left traders hesitant to re-enter.

While not as extreme as some cyclical bears, Crown warns Bitcoin could drop further — potentially into the mid-$50,000 to low-$60,000 range — before stabilizing. He frames that range as a potential opportunity to accumulate long-term positions rather than a signal that crypto’s broader cycle is over.

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