Bitcoin Dips Below $80K

Bitcoin Price Plunges Below $80,000

Bitcoin experienced a significant drop, hitting a low of $79,500 on Binance on Thursday. This represents a 26% decline from its January peak, fueled by broader market risk aversion impacting crypto assets. The situation warrants close attention from investors and developers alike.

Market Analysis and Predictions

Analysts at Wolfe Research predict Bitcoin could fall to $70,000—a level unseen since Election Day—if it fails to reclaim the $90,000 mark. Wolfe analyst Read Harvey highlighted the decisive break below the $91,000 support level as a bearish signal. He emphasizes that the absence of a quick recovery would confirm a negative trend.

“$91,000 acted as the floor over the past several months. With that level now decisively taken out, anything less than another V-shaped oversold response would send a very bearish message. So far not so good,” Harvey stated, as reported by CNBC.

Harvey further warns that intensified bearish sentiment could push prices back to pre-election levels.

Economic Uncertainty and Market Risk

President Trump's tariffs on major trading partners are cited as a key factor driving economic uncertainty and impacting investor confidence. This de-risking behavior is affecting stocks, commodities, and cryptocurrencies alike.

“Uncertainty is at the forefront of investors’ concerns and the willingness to take on risk is rapidly waning,” Harvey said.

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