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.