- Bitcoin dropped below $80K for the first time since November, reaching a low of $78,984.63.
- The crypto market declined, with ETH, SOL, and XRP dropping over 7%.
Bitcoin has dropped below $80,000 for the first time in over three months, marking a sharp reversal from its post-election rally. The decline comes amid macroeconomic uncertainty and concerns over U.S. President Donald Trump’s proposed tariffs.
Bitcoin is trading at $80,050, rebounding slightly after hitting a low of $78,984.63. The market cap stands at $1.57 trillion, while the market cap ratio is 4.38%. The 24-hour trading volume is $70.72 billion, showing a 1.27% increase.
Bitcoin’s sharp drop follows a broader market sell-off. On January 20, BTC reached an all-time high of $109,241, the day of Trump’s inauguration. Since then, it has fallen 26%, erasing most of its post-election gains.
Bitcoin is facing resistance at $82,000. If BTC breaks this level, it could push toward $85,000. However, $78,000 remains a key support level. A break below that could lead to a further drop toward $70,000.
Bearish indicators for Bitcoin (BTC)
The RSI is at 66.59, indicating that BTC is approaching overbought territory. The RSI average of 58.75 suggests strong momentum, but a correction may occur if buying pressure weakens. The moving averages indicate an uptrend, with a bullish crossover forming. This suggests Bitcoin could continue its recovery if price levels hold.
The CMF stands at 0.42, showing that buying pressure remains strong. This signals capital inflows, supporting Bitcoin’s stability despite recent price swings. Despite volatility, institutional investors remain bullish. Geoffrey Kendrick, Standard Chartered’s Head of Digital Assets Research, expects Bitcoin to hit $200,000 in 2025 and $500,000 before Trump’s second term ends.
The crypto market is also feeling the effects of Bitcoin’s decline. Ethereum (ETH) fell 7.3%, Solana (SOL) dropped 7.1%, and XRP slid 7.8%. Adding to Bitcoin’s troubles, U.S. Bitcoin ETFs saw a record $1 billion outflow, intensifying selling pressure.
Bitcoin’s price is at a crucial level. If BTC holds above $80,000, it could push toward $85,000. However, breaking below $78,000 may lead to further losses. Traders remain cautious as macroeconomic factors and regulatory shifts shape Bitcoin’s trajectory.
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