Bitcoin has fallen below $80,000 in the past few hours, capping off a volatile January with another wave of liquidations. Analysts at Kobeissi report three major liquidation events in the last 12 hours, totaling $1.3 billion in losses. This activity, combined with a fearful market following last week’s price drop, has pushed Bitcoin below a key level.
Market expert Burak Kesmeci notes that Bitcoin’s interaction with the $80,000 zone is crucial for determining its future direction. Before the recent drop, Bitcoin had twice retested and held this level after a correction that began in early October 2025, reinforcing it as a major support zone.
Kesmeci also points out that $80,000 represents the cost basis for Bitcoin Spot ETFs. Falling below this price now puts many institutional investors at risk of unrealized losses. Bitcoin ETFs have already seen significant withdrawals in January 2026, with net outflows of $1.61 billion. These outflows could increase sharply if the price remains below the ETF cost basis, potentially triggering widespread panic selling.
Furthermore, Kesmeci identifies $80,000 as the current True Market Mean.
Looking ahead, Kesmeci outlines two scenarios. In a bearish case, a weekly close below $80,000 could intensify selling pressure, potentially driving Bitcoin down toward $72,000, $68,000, and eventually $62,000. These levels correspond with significant volume clusters where the price might find temporary support.
In a bullish scenario, a sustained rebound from current levels could restore positive momentum. The first major resistance is at $90,000, followed by a critical level near $95,000 (the 111-period Simple Moving Average). A decisive break above the psychological $100,000 mark would strongly signal a resumption of the broader uptrend.
At the time of writing, Bitcoin is trading at $77,832, down 7.1% over the past day.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Why a Bitcoin Drop Below 80000 Could Signal a Steep Decline designed to be helpful for both beginners and more experienced individuals
Beginner Concept Questions
1 What does this headline even mean
It means a financial analyst is warning that if Bitcoins price falls and stays below the 80000 level it could trigger a larger more significant selloff potentially pushing the price much lower
2 Why is 80000 such an important number
In trading certain price levels become psychologically important or act as strong support 80000 may represent a key level where many buyers have previously stepped in If that buying support fails it can lead to panic and more selling
3 What is support in trading
Support is a price level where buying interest is historically strong enough to prevent the assets price from falling further Think of it as a floor If that floor breaks the price can fall to the next level down
4 Who is this analyst and should I trust them
The analyst could be a market strategist from a research firm a wellknown trader or a technical analyst Its important to remember that this is one persons prediction or analysis not a guaranteed fact Always do your own research and consider multiple viewpoints
Intermediate Market Dynamics Questions
5 What typically causes Bitcoin to drop below a major support level like this
It can be caused by a combination of factors large investors selling negative news a shift in overall market sentiment from greed to fear or simply a lack of new buyers at that price
6 What does a steep decline usually look like
Theres no set amount but in volatile markets like crypto a steep decline could mean a drop of 1530 or more from the broken support level in a relatively short period
7 If it drops below 80000 where might it go next
Analysts look for the next major support level below This could be a previous peak or a key moving average The article or analyst would likely mention their next target