Bitcoin's Volatile Ride: Analysts Warn of Potential Plunge to $80,000
Bitcoin has seen its recent gains erased, sliding to a three-week low amid renewed market volatility. As the flagship cryptocurrency attempts to reclaim crucial support levels, several market observers are sounding the alarm, cautioning that a continued downturn could see prices retesting significantly lower thresholds, potentially reaching the $80,000 mark or even further if current trends persist.
The Retreat of Bitcoin: Key Support Levels Under Threat
After a strong start to the year, seeing Bitcoin trade between $90,000 and $96,000 and briefly touching a two-month high of $97,924, geopolitical tensions have fueled a 10% retracement over the past week. This decline has pushed BTC into the mid-$84,000 to $94,000 range. Analyst Wealthmanager notes that Bitcoin has now retraced all its 2026 gains, dipping below its yearly opening and Point of Control (POC). Losing this critical area, he warns, could send the price spiraling back to $80,000. Complementing this, Crypto Jelle highlights a two-month bear flag formation on Bitcoin's daily chart, strongly indicating a potential breakdown. Similarly, Lyvo Crypto observes that Bitcoin has already breached its ascending support pattern, signifying the loss of its two-month uptrend and suggesting that sustained bearish momentum could lead to a "free fall" to the $78,000 area.
Drawing Parallels: Is a 2022-like Correction Imminent?
Analyst Crypto Bullet draws a striking parallel between Bitcoin's current price action and its performance in early 2022. Back then, Bitcoin saw a more than 40% retracement from its late 2021 cycle top. While the current market has seen a 30% pullback from October highs, Crypto Bullet identifies two crucial differences. Firstly, Bitcoin has yet to retest its 50-week and 200-week Moving Averages. Secondly, the timing suggests that a final breakdown, if it occurs, might not be due until later in Q1. Despite the warnings, Crypto Bullet posits that another pump above $100,000 remains a possibility but strongly advises caution as key support levels undergo rigorous testing. As of this writing, Bitcoin is trading at $89,890, reflecting a modest 1.2% daily increase, indicating ongoing market uncertainty.
