Bitcoin tumbled below $80,000 for the first time in over three months, spooking investors and fueling concerns of a wider market rout. The total crypto market capitalization has lost 5.40% over the period of 24 hours whereas its trading volume decreased 5.69% to $147.63 billion.
With Bitcoin’s Fear and Greed Index at 16 (extreme fear), traders are questioning: Is this a temporary dip or the start of a bigger crash?
The sell-off came after broader macroeconomic uncertainty, including fears over former U.S. President Donald Trump's proposed tariffs. Such volatility has sent Bitcoin to its lowest point since November 2024, a striking drop from its all-time peak of more than $109,350 last month.
Why is Bitcoin Falling? There are some reasons why Bitcoin recently dropped, such as macroeconomic volatility, whale liquidation, and technical signals that indicate bearish momentum.
As the trader left with many questions: Why is the crypto market is down and will it recover?
According to Coinglass data, 203,639 traders faced liquidations amounting to $803.06 million in the past 24 hours. The largest single liquidation order was placed on HTX, with a BTC-USDT position worth $38 million.
A prominent Bitcoin whale who went long on BTC two months ago has suffered a loss exceeding $17 million. The liquidation price for this position is set at $69,839, prompting speculation on whether Bitcoin could dip further to trigger additional liquidations.
On the daily chart, Bitcoin is beneath its 200-day moving average—a bearish sign pointing towards a downtrend. Meanwhile, the Relative Strength Index (RSI) has fallen sharply to 21, which means levels of oversold.
If Bitcoin fails to remain above the critical $80,000 level, the next important support will be at $74,000—a level already acting as obstinate resistance. Second, Open Interest has fallen by 6.33% to $49.99 billion, reflecting diminishing interest in derivative trading.
Source: TradingView
Despite near-term fluctuations, the long-term technicals of Bitcoin are sound. Correctives of this sort have in the past offered strategic buying opportunities. As legendary investor Warren Buffett advises: “Be greedy when others are fearful.”
For Bitcoin to recover its strength, it must return to $80,000 and breach significant resistance of $85,000. Below this, further price volatility can be expected with potential risks of sliding to $70,000 if selling grows.
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Lokesh Gupta is a seasoned financial expert with 23 years of experience in Forex, Comex, NSE, MCX, NCDEX, and cryptocurrency markets. Investors have trusted his technical analysis skills so they may negotiate market swings and make wise investment selections. Lokesh merges his deep understanding of the market with his enthusiasm for teaching in his role as Content & Research Lead, producing informative pieces that give investors a leg up. In both conventional and cryptocurrency markets, he is a reliable adviser because of his strategic direction and ability to examine intricate market movements. Dedicated to study, market analysis, and investor education, Lokesh keeps abreast of the always-changing financial scene. His accurate and well-researched observations provide traders and investors with the tools they need to thrive in ever-changing market conditions.
23-03-2025
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