Bitcoin (BTC) plunged to $77,000 on Sunday, marking its lowest level since April 2024, as derivatives market liquidations surpassed $1.6 billion and the broader cryptocurrency sector shed approximately $111 billion in market capitalization within 24 hours.
What Happened: Market Capitulation
The selloff pushed Strategy's 712,647 Bitcoin holdings briefly below the company's average purchase cost of $76,037 per coin.
Ethereum (ETH) declined 17% while Solana (SOL) dropped more than 17%, indicating broad selling pressure across major tokens rather than Bitcoin-specific weakness. Bitcoin has now fallen approximately 40% from its October 2025 all-time high of $126,000.
The decline extended a downturn that began Thursday when Bitcoin was rejected at $90,000 before falling nearly $10,000 within hours. Capital inflows have dried up according to on-chain data.
Also Read: Russia-Linked Activity Fuels Five-Year High In Illicit Crypto
Why It Matters: Analysts Warn of Deeper Decline
Technical indicators suggest the selloff may not be over.
Analyst Maigoro, posting on CoinMarketCap, noted Bitcoin is trading "far under every major moving average" with the 200-day moving average sitting at $90,093. "RSI is deep oversold, but in strong downtrends RSI can stay oversold for long," Maigoro wrote, identifying breakdown targets between $72,000 and $70,500.
Analyst MonoCoin warned traders against treating oversold conditions as buying opportunities. "When ADX is greater than 40 and price is dropping, oversold doesn't mean reversal," MonoCoin wrote. "It means capitulation is just starting." MonoCoin identified a "real buy zone" at $74,457, describing current prices as a "no touch zone" where buyers would be "providing exit liquidity for whales."
Analyst ProTrader365 noted Bitcoin has entered a "high-probability reversal zone" between $70,080 and $78,260 but warned that Middle East escalation risks could push prices below $70,000.
Rahman Crypt recommended traders prioritize capital preservation, advising to "cut leverage, protect cash" and "trade structure, not noise." The analyst suggested dollar-cost averaging only at strong support levels without committing full positions.
Analyst CryptoAnu observed that shorting "appears to be the most profitable strategy," noting top AI trading bots were short from $83,000 and took profit below $80,000.