Bitcoin (BTC) Faces Potential Drop to $80K as Rally Stalls
Bitcoin has seen a significant decline of 30% from its peak value as analysts anticipate a possible fall to $80,000 if key resistance isn't overcome.
Bitcoin (BTC) has experienced a decline of nearly 30% from its high of over $126,000 earlier this month. The digital asset is currently trading around $86,500, showing sluggish movement after a sharp decrease this month.
Current Situation
Although there have been minor rebounds, no definitive signs of a trend reversal are apparent. The focus lies in whether Bitcoin can surpass the $88,000 mark. Should it fail, a downward trend could persist.
Key Resistance Point: $88K
Analyst Michaël van de Poppe noted that Bitcoin is stuck within a consolidation phase between support and resistance levels. He stated on X, “Trend remains to be down, and in order to adjust the trend, a breakout above $88K is required.”
Bitcoin Price Chart
Bitcoin (BTC) Price Chart 17.12. Source: Michaël van de Poppe/X
Recently, Bitcoin reached approximately $88,000 before declining slightly to around $87,500. The current range between $85,100 and $93,000 indicates an unpredictable market. Potential lower levels near $80,000 are becoming a focal point for investors.
Kamran Asghar, another analyst, asserted that Bitcoin is attempting to establish a new base after falling below a longstanding support line. He identified $86,500 as a potential short-term bottom but cautioned about further declines, especially towards the $72,000 to $75,000 range.
Long-Term Trends
Bitcoin’s weekly chart indicates a loss of supertrend support for the first time since January 2023. According to Bitcoinsensus, this marks a significant structural break during the current bull cycle, amplifying prevailing bearish sentiments. Long-term holders are beginning to offload their positions.
“Long-term holders are now selling $BTC at their fastest pace in 7 years,” stated Ted.
This trend contributes to selling pressures that may limit any bounce attempts. Additionally, slipping prices in recent days are tied to liquidations across high-leverage positions.
“Bitcoin’s recent price drop was driven by liquidations — not spot selling,” reported Bitcoin Duniya.
This situation displays a reduction of excess leverage rather than a lack of demand. Until the market dynamics adjust, price recovery remains uncertain with the potential for further drops.
