Bitcoin experienced a sharp selloff yesterday, plunging below the critical $80,000 level and briefly touching lows around $74,400. The move has rattled investors and put bulls on the defensive, as bearish momentum continues to build across the crypto market. Despite the steep correction, analysts note that the long-term structure for Bitcoin remains intact — as long as BTC holds above current levels in the coming days.
The broader financial environment continues to weigh heavily on sentiment. Trade war fears, economic instability, and geopolitical tensions have created a highly volatile backdrop for global markets. Bitcoin, often viewed as a risk-on asset, has not been spared from the pressure, reacting sharply to every macroeconomic headline.
Adding to the concern, top crypto analyst Ali Martinez shared a technical analysis showing that Bitcoin has just flashed a death cross — a bearish chart pattern triggered when the 50-day simple moving average dips below the 200-day moving average. Historically, this signal has often preceded extended downtrends or periods of sideways consolidation.
With key levels now under threat, all eyes are on whether Bitcoin can stabilize above $74,000 and mount a recovery, or if further downside is still ahead.
Bitcoin Tests Critical Demand As Market Selloff Accelerates
Bitcoin is trading at a crucial demand zone after breaking below the $80,000 level for the first time in months. The broader financial market remains on edge, fueled by rising geopolitical tensions and economic instability. U.S. President Donald Trump’s increasingly aggressive tariff policies and erratic public statements have only added to the uncertainty, triggering a wave of selling across both traditional and crypto markets.
Fear is spreading quickly, and investors are increasingly calling for the start of a new bear market. Most crypto assets have already plunged over 60% from their all-time highs, while Bitcoin has dropped 31% from its peak, signaling growing exhaustion among bulls. The break below $80K confirms that downside pressure is firmly in play, and technical sentiment has taken a turn for the worse.
Supporting the bearish outlook, Martinez’s key technical development reveals that Bitcoin has just flashed a death cross — a signal that occurs when the 50-day simple moving average dips below the 200-day simple moving average. Historically, this pattern has preceded extended downtrends and periods of stagnation.
As Bitcoin clings to its current range, the next few days will be critical. If it fails to reclaim higher ground soon, the correction could accelerate, driving BTC deeper into lower support zones.
Bitcoin Bulls Fight To Avoid Bear Market Breakdown
Bitcoin is trading at $76,100 after a bearish Sunday and a weak Monday morning, putting bulls under intense pressure to regain control. The recent breakdown has raised serious concerns about the broader market structure, especially as fear and uncertainty continue to weigh heavily on investor sentiment.
At this point, the bullish outlook is hanging by a thread. To prevent a confirmed shift into a long-term bear market, BTC must recover quickly and reclaim key levels. A decisive move above $81,000 is essential to reestablish upward momentum and spark a recovery rally. Without that breakout, the current structure favors sellers, and the risk of deeper downside remains high.
Analysts agree that the $75,000 level is now the most important threshold on the chart. If Bitcoin loses this level with conviction, it would confirm a prolonged bearish phase, validating technical signals like the recent death cross and reinforcing the bear market thesis.
Time is running out for bulls to flip sentiment. The next few daily closes will be critical in determining whether Bitcoin can stabilize and rebound — or if the downtrend accelerates into a full-scale reversal of the broader 2024 uptrend.
Featured image from Dall-E, chart from TradingView
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
0 Comments