Bitcoin: The Risk Of A Drop To $81,000 Worries The Crypto Market

Bitcoin wavers below a critical threshold, and pressure is intensifying. While the cryptocurrency had crossed the $90,000 mark a few weeks ago, it is now below $85,000, leaving analysts contemplating a more pessimistic scenario. Between massive ETF sales, cascading liquidations, and macroeconomic uncertainties, volatility is resurfacing, rekindling fears of a collapse at $81,000. Is the market on the brink of a brutal reversal or is it merely a temporary correction?

A key threshold at risk: $85,000 under pressure

The situation deteriorated abruptly when Bitcoin fell to $87,629, its lowest level in three months, thus breaking the resistance at $90,000. This drop has put pressure on the $85,000 zone, a threshold considered crucial by many analysts for the continuation of the trend. According to Ryan Lee, an analyst at Bitget Research, “Bitcoin is in a phase of consolidation, but selling pressure could hasten a test of $81,000 if support levels continue to give way.”

In parallel, the intensity of liquidations has heightened panic in the market. Over a billion dollars worth of long positions have been liquidated after breaking the $85,000 mark, accentuating the bearish momentum. Hong Yea, CEO of the GRVT platform, emphasizes that “the $85,000 level is critical: if it is breached downward, it could trigger a new wave of massive sales.” The situation is made even more critical as outflows from Bitcoin ETFs are reaching alarming levels.

Bitcoin ETFs in crisis: six days of massive outflows

The Bitcoin ETFs, intended to serve as an institutional gateway for investors, have recorded net outflows exceeding $516 million in a single day. This trend, which has been ongoing for six days, coincides with the decline in BTC and intensifies pressure on the market. Thus, these outflows reflect a retreat in the confidence of institutional investors, further complicating a quick rebound in prices.

The lack of a positive reaction from Bitcoin despite massive investment from Strategy, which has yet injected an additional $2 billion into BTC, illustrates the lack of bullish momentum. Usually perceived as a sign of confidence, such an acquisition has not been enough to stabilize the market, suggesting that selling pressure remains dominant.

If Bitcoin fails to defend the $85,000 level, a correction toward $81,000 seems plausible, according to observers. However, this hypothesis will depend on the evolution of ETF flows and the behavior of investors in the short term. A potential buyers’ intervention could stabilize the market, but the macroeconomic context, combined with regulatory uncertainties and recent hacking incidents, maintains strong pressure on prices. The crypto market is experiencing a critical moment. While some see it as a healthy correction before a rebound, others fear the onset of a prolonged bearish cycle. The current dynamics remind us that volatility remains a constant of Bitcoin, and its immediate future will depend on the resilience of buyers in the face of this bearish storm.