Bitcoin Price Analysis: BTC Drops Below $80,000 As Decline Continues

Bitcoin (BTC) slumped below $80,000 on Friday as bearish sentiment continued to dominate, pushing the price below key support levels and moving averages. The flagship cryptocurrency dropped to an intraday low of $78,179 earlier today before recovering to trade around the $80,000 level. 

BTC is down nearly 8% during the ongoing session and has declined almost 19% over the week as investors look elsewhere to park their funds amid growing concerns about tariffs and higher inflation. 

Bitcoin (BTC) Slides To Year-Long Lows 

Bitcoin (BTC) plunged below $80,000 earlier today as the ongoing rout wiped out over $1 trillion from the markets and shows no signs of slowing down. The flagship cryptocurrency is down close to 25% from its all-time high and has given up all its gains from the post-election rally. So strong is the bearish sentiment that analysts are warning traders not to buy the dip, worried the correction could escalate into a full-blown market crash. According to one analysis, BTC’s next target is around $70,000. 

“According to technical analysis, the next target for bitcoin’s price is around the $70,000 level, which serves as a strong support zone. However, we will only see this level if negative sentiment dominates the equity markets. U.S. stock indices have been in the red for several consecutive days, but it is still too early to conclude that the broader uptrend has ended—it could simply be a market correction.”

Risk aversion continues to plague crypto and equity markets, with spot Bitcoin ETFs registering record outflows as investors look for safe-haven assets. Pav Hundal, lead market analyst at Swyftx, stated, 

“We’ve gotten used to U.S ETFs picking up the slack, and that’s not happening right now. Instead, we’ve watched value exit funds at record levels over the last seven trading days as bad news has piled on bad news. Risk aversion has taken over and we’re seeing underwhelming performances across crypto, gold, and global equity indexes.”

Positive Sentiment Has Run Its Course

BTC’s recent slump indicates the waning positive sentiment that dominated crypto after Donald Trump won the election. Trump’s election victory and the promise of a crypto reserve and a friendly administration played a key role in sending BTC and several other cryptocurrencies to all-time highs. However, analysts believe the positive sentiment has run its course. Joshua Chu, Co-Chair of the Hong Kong Web3 Association, stated, 

“Bitcoin’s fall below $80k shows that positive sentiments from a crypto-friendly administration and high-profile endorsements have run their course.”

There has been little progress regarding campaign promises besides the appointment of crypto-friendly officials, leaving many in the crypto space disappointed. Kyle Rodda, senior financial market analyst at Capital.com, stated, 

“Momentum ran out when there was no fresh news to keep driving the bullish narrative. On top of that, given the move in Mag 7 stocks we’ve seen, which is also a story of momentum slowing and valuations deflating, bitcoin, which still trades as a ‘higher beta tech’ play, is being dragged down by a sell-off in Wall Street tech stocks.”

Bitcoin (BTC) Needs Key $75,000 Support

Bitcoin (BTC) risks more downside if it loses a key level of support at $75,000 amid growing macroeconomic concerns, inflation, and a trade war between the US and China. Several reasons are behind BTC’s latest decline, with analysts pointing out growing inflation concerns and a potential trade war with China after President Trump imposed import tariffs. According to Ryan Lee, Chief Analyst at Bitget Research, these concerns have created considerable unrest among investors. 

“Bitcoin’s drop below $80,000 amid investor fear from Trump’s tariffs and market unrest points to a correction likely hitting $76,000-$78,000 this week, nearing $75,000 as a key support level based on historical patterns and trader sentiment.”

Analysts are concerned the correction could drive the flagship cryptocurrency to $70,000. However, despite overwhelming bearish sentiment, analysts don’t expect BTC to slip below $70,000. According to Lee, continued buying from institutions like Strategy makes a decline to $70,000 less likely unless there is a significant downside catalyst. 

“A further plunge to $70,000 is possible but less probable by March 2 without a significant new shock. The $75,000 level aligns with technical support and stablecoin buffers, while $70,000 would need sustained panic or macro deterioration beyond current pressures.” 

Bitcoin (BTC) Price Analysis 

Spot Bitcoin ETFs have registered record outflows as investors pull out funds from risk assets. Markets are jittery because they fear the so-called exceptionalism of the US economy may be waning as Trump prepares to impose tariffs on longtime allies Canada and Mexico. Fears of a trade war with China have also stoked fears of higher inflation and sluggish growth. Trump has also confirmed that 25% tariffs on goods imported from Canada and Mexico will begin on March 4. The Bybit hack has also significantly dampened investor sentiment. 

BTC has traded primarily in the red since last Friday, with bearish sentiment intensifying to take it below key moving averages and support levels. BTC recovered from a decline to $93,431 last Tuesday, registering an increase of almost 1% on Wednesday and moving to $96,386. Buyers retained control on Thursday as BTC moved past the 20-day SMA after an increase of nearly 2% and settled at $98,251. Markets turned bearish on Friday as news of the Bybit hack broke. As a result, BTC encountered considerable volatility before dropping 2.10% to slip below the 20-day SMA and settle at $96,184. The price registered a marginal increase on Saturday and a marginal decline on Sunday to end the weekend in the red at $96,084.

Source: TradingView

Bearish sentiment intensified on Monday as BTC dropped nearly 5%, slipping below $95,000 and settling at $91,622. BTC fell below the crucial $90,000 level on Tuesday as sellers continued to dominate the market, falling to an intraday low of $85,985. The price recovered from this level but could not reclaim $90,000, ultimately settling at $88,654. BTC continued to decline on Wednesday, registering a drop of over 5%, falling to a low of $82,081 before settling at $84,129. Despite the overwhelming bearish sentiment, BTC recovered on Thursday, reaching an intraday high of $87,045 before settling at $84,657, ultimately registering an increase of 0.64%. However, bearish sentiment has returned during the current session as BTC plunged below the 200-day SMA and $80,000, dropping to an intraday low of $78,179. The flagship cryptocurrency has recovered from this level and is trading just above the $80,000 level.

Analysts expect BTC to drop to $75,000 if its current decline continues. A break below this level could drag it to $70,000. The RSI has plunged below 30, indicating significant selling pressure. It also suggests BTC could be due for a short-term bounce. However, analysts have warned buyers to be cautious as the RSI could remain in the oversold zone while BTC corrects.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.