Bitcoin Price Drops Below $80,000 Amid Market Turbulence
Bitcoin's price has declined sharply, falling below $80,000 for the first time since November 11, marking an 18% drop since the beginning of the week. It has lost approximately 27% from its all-time high of $109,588 on January 20.
Key factors influencing this downturn include:
- New tariffs imposed by Trump
- Large outflows from spot BTC ETFs
- High liquidation levels in futures markets
The Fear and Greed Index indicates "Extreme Fear" at 16, suggesting a significant shift in market sentiment. Analysts speculate these conditions may herald either further declines or a potential rebound.
Market Analysis
Scott Melker notes a developing bullish divergence on multiple timeframes, indicating a possible reversal signal. He emphasizes the importance of the RSI holding up well despite recent declines.
Tony Severino suggests a corrective pattern similar to past cycles could lead Bitcoin lower, potentially reaching around $75,000 if current trends continue. He warns that breaching the monthly Parabolic SAR at $75,742 could indicate deeper corrections.
Josh Olszewicz identifies a potential retest of weekly kijun support at $74,000, which was last touched during significant market volatility in August 2024.
Daan Crypto Trades points out historical patterns when Bitcoin's Daily RSI dipped to 20, suggesting that current oversold conditions may warrant investor attention. He also highlights substantial buy orders on Binance futures, with approximately $1.8 billion in bids between $70,000 and $79,000.
Ki Young Ju emphasizes liquidity's role in Bitcoin's trajectory, noting the lack of new liquidity sources may affect price movements. He predicts a consolidation range between $75,000 and $100,000 until positive catalysts emerge.
Current Bitcoin price stands at $78,856.