Bitcoin drops below $80,000 as downside risks deepen

Bitcoin fell below the $80,000 level in the past few hours as another wave of liquidations hit the market near the end of a volatile January.

Analysts at Kobeissi said three major liquidation events occurred within 12 hours, wiping out a combined $1.3 billion.

The latest sell-off added pressure to an already fearful market following last week’s sharp price decline.

Market analyst Burak Kesmeci said Bitcoin’s reaction around $80,000 is critical for determining the next market direction.

Kesmeci explained that before the breakdown, Bitcoin had successfully retested the $80,000 zone twice after a correction that began in early October 2025.

Each rebound reinforced $80,000 as a major technical support level and raised expectations of a possible trend reversal.

The loss of this support highlights the market’s sensitivity to the $80,000 price area.

Beyond technical signals, Kesmeci stressed that $80,000 also represents the realised cost basis of Bitcoin spot exchange-traded funds.

Trading below this level places a large share of institutional ETF investors into unrealised losses.

Bitcoin ETFs have already recorded heavy outflows in January 2026, with net withdrawals reaching $1.61 billion.

Kesmeci warned that continued trading below the ETF cost basis could spark panic-driven redemptions and push outflows higher.

He added that $80,000 currently aligns with Bitcoin’s true market mean, strengthening its importance as a dividing line for sentiment.

In a bearish scenario, Kesmeci said a weekly close below $80,000 would likely accelerate downside momentum.

Under that outcome, Bitcoin could fall towards $72,000, then $68,000, and potentially as low as $62,000.

These levels coincide with major volume profile clusters where liquidity may build and price action could pause.

In a bullish scenario, Kesmeci said a strong rebound from current prices could return momentum to buyers.

The first key resistance stands near $90,000, followed by the 111-period simple moving average around $95,000.

A sustained move above $95,000 would be needed to confirm a medium-term trend reversal.

A decisive breakout above the $100,000 psychological level would further strengthen the bullish outlook.

At the time of reporting, Bitcoin price was $78,379.74.