Bitcoin has dropped to its lowest point in weeks, erasing its gains for 2026 as it struggles to hold a key support level. Some analysts warn that if volatility persists, the cryptocurrency could retest its lows from November.
Bitcoin continued its decline on Wednesday, falling to a three-week low of $87,263. After breaking out at the start of the year and reaching a two-month high of $97,924 last week, BTC had been trading in a range between $90,000 and $96,000. However, recent geopolitical tensions have fueled market volatility, leading to a 10% drop over the past week. The price is now in the middle of its $84,000-$94,000 range.
Trader Wealthmanager pointed out that Bitcoin has given back all its 2026 gains, briefly falling below its yearly opening price and the point of control (POC). He emphasized that holding this level is critical; a breakdown could push the price toward $80,000.
Analyst Crypto Jelle identified a two-month bear flag pattern on Bitcoin’s daily chart, indicating a high probability of a further decline. “Lose the current lows again, and bears will be fully back in the driver’s seat,” he stated.
Market observer Lyvo Crypto noted the same pattern, explaining that Bitcoin has broken below the flag’s ascending support and lost its two-month uptrend. He believes bearish momentum is now in control and warned that if it continues, a “free fall” could test the $78,000 area. If Bitcoin falls to the November lows, he suggests waiting for confirmation of a double bottom before expecting a relief rally.
Analyst Crypto Bullet compared the current price action to Bitcoin’s pattern in early 2022, suggesting a major correction might be ahead. Back then, Bitcoin fell over 40% from its late 2021 peak, experienced a brief rebound in early 2022, and then corrected again to new lows. Currently, Bitcoin has retraced 30% from its October highs and is trying to recover lost ground.
However, Crypto Bullet highlighted two key differences from the 2022 correction. First, Bitcoin has not yet retested its 50-week and 200-week moving averages. Second, the timing suggests the final breakdown may not occur until later in the first quarter. He explained that if the pattern aligns with 2022, there is still about a month of price action left for a final upward move to test these key averages.
He concluded that another push above $100,000 is possible but advised caution as critical support levels are being tested.
At the time of writing, Bitcoin is trading at $89,890, up 1.2% over the past 24 hours.
Frequently Asked Questions
Frequently Asked Questions About Bitcoins Price Volatility
Beginner Questions
1 What does Bitcoin to 80000 mean
Its a price prediction some analysts have made suggesting Bitcoins value could rise to 80000 per coin in the future It is not a guarantee just a forecast
2 Why is Bitcoins price so volatile
Bitcoin is a relatively new and speculative asset Its price is heavily influenced by investor sentiment news headlines large trades regulatory news and broader economic conditions leading to rapid swings
3 What does erasing 2024 gains mean
It means Bitcoins price has fallen back to where it started at the beginning of 2024 wiping out all the increases it had achieved during the year up to that point
4 What is a potential free fall in this context
An analyst warning of a free fall means they believe there is a risk the price could drop sharply and quickly from its current level with few immediate supports to stop the decline
5 Is Bitcoin a safe investment
No Bitcoin is considered a highrisk highvolatility asset Its price can go up or down dramatically You should never invest money you cannot afford to lose
Intermediate Questions
6 What typically causes a major Bitcoin price drop
Major drops can be triggered by factors like negative regulatory news security breaches at major exchanges large investors selling a shift in broader market risk sentiment or technical breakdowns of key price levels
7 How do analysts make predictions like 80000
They use a combination of technical analysis onchain analysis and fundamental analysis
8 Should I buy Bitcoin when its falling
This is a personal strategy called buying the dip While it can be profitable if the price recovers its risky because the price could continue to fall Never invest based on fear of missing out or panic
9 Where is the safest place to hold Bitcoin
The safest method is to withdraw your Bitcoin from an exchange to a selfcustody walletlike a hardware wallet or a