(Bloomberg) — Bitcoin is headed for what could be its worst week since early March, with few signs that investors are getting ready to buy the dip after a rout that erased about $300 billion of digital-asset market value.

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The original cryptocurrency has lost 6.2% so far this week, a period in which it dipped below $100,000 for the first time since June. Strategists now point to a range of indicators flashing warning signs for Bitcoin and the broader market.

It all adds up to a spectacular reversal of sentiment from early October, when Bitcoin rallied to a record on the back of frenzied buying on margin. That bull run proved fragile when $19 billion of leveraged positions across crypto suddenly got wiped out just days later, an event from which confidence has yet to recover.

Michael Novogratz’s Galaxy Digital on Wednesday cut its year-end Bitcoin price target to $120,000 from $185,000, citing the “significant leverage wipeout.”

“The margin is a spear coming out of the steering wheel of your sports car, and you’re in the south of France on an icy road in the mountain terrain by Monaco,” said SkyBridge Capital founder Anthony Scaramucci in an interview. “And when you need to hit the brake, that’s when the leverage hurts you the most.”

A month after Bitcoin hit an all-time high of $126,251, below are some signals informing the bearish sentiment in crypto.

Bitcoin’s Moving Average

According to market analytics firm CryptoQuant, Bitcoin’s slide below its 365-day moving average near $102,000 could be a harbinger of a steepening retreat. That support level, which has held firm since early 2023, now shows signs of cracking.

“The 365-day moving average has acted as the ultimate support level so far this bull cycle, and was one of the last signals triggered as the bear market began in December 2021–January 2022,” it said in a report Wednesday. “A failure to cross back above the 365-day MA quickly could trigger a much larger correction in Bitcoin’s price.”

Bitcoin vs. Other Risk Assets

While technology stocks hit turbulence this week amid concerns about frothy artificial-intelligence valuations, traders have responded by buying into any weakness. The Nasdaq 100 Index is within 2% of its Oct. 29 record high and the broader S&P 500 is similarly close to its peak.

(Bloomberg) — Bitcoin is headed for what could be its worst week since early March, with few signs that investors are getting ready to buy the dip after a rout that erased about $300 billion of digital-asset market value.

Most Read from Bloomberg

• Trump’s 90,000-Square-Foot Ballroom Plan Puzzles the Experts

• Can Anyone Save Gary, Indiana?

• Boston’s South Station Gets a Towering Makeover

• NYC Gets 12-Minute Helicopter for Suburbanites Avoiding Gridlock

• In Vancouver, A Court Ruling on Indigenous Land Triggers Real Estate Angst

The original cryptocurrency has lost 6.2% so far this week, a period in which it dipped below $100,000 for the first time since June. Strategists now point to a range of indicators flashing warning signs for Bitcoin and the broader market.

It all adds up to a spectacular reversal of sentiment from early October, when Bitcoin rallied to a record on the back of frenzied buying on margin. That bull run proved fragile when $19 billion of leveraged positions across crypto suddenly got wiped out just days later, an event from which confidence has yet to recover.

Michael Novogratz’s Galaxy Digital on Wednesday cut its year-end Bitcoin price target to $120,000 from $185,000, citing the “significant leverage wipeout.”

“The margin is a spear coming out of the steering wheel of your sports car, and you’re in the south of France on an icy road in the mountain terrain by Monaco,” said SkyBridge Capital founder Anthony Scaramucci in an interview. “And when you need to hit the brake, that’s when the leverage hurts you the most.”

A month after Bitcoin hit an all-time high of $126,251, below are some signals informing the bearish sentiment in crypto.

Bitcoin’s Moving Average

According to market analytics firm CryptoQuant, Bitcoin’s slide below its 365-day moving average near $102,000 could be a harbinger of a steepening retreat. That support level, which has held firm since early 2023, now shows signs of cracking.

“The 365-day moving average has acted as the ultimate support level so far this bull cycle, and was one of the last signals triggered as the bear market began in December 2021–January 2022,” it said in a report Wednesday. “A failure to cross back above the 365-day MA quickly could trigger a much larger correction in Bitcoin’s price.”

Bitcoin vs. Other Risk Assets

While technology stocks hit turbulence this week amid concerns about frothy artificial-intelligence valuations, traders have responded by buying into any weakness. The Nasdaq 100 Index is within 2% of its Oct. 29 record high and the broader S&P 500 is similarly close to its peak.