Bitcoin To $80,000? Analyst Warns Of Potential Free Fall As BTC Erases 2026 Gains

Overview

Bitcoin has recently experienced a significant decline, erasing its gains for the year 2026 and reaching its lowest level in several weeks. The cryptocurrency is attempting to reclaim a crucial support level amid ongoing market volatility, which has raised concerns among analysts about the potential for further declines.

Market Dynamics

As of Wednesday, Bitcoin reached a three-week low of $87,263, continuing a downward trend that has seen it pull back from a two-month high of $97,924. Since the beginning of the year, Bitcoin had traded within the range of $90,000 to $96,000; however, recent geopolitical tensions have contributed to heightened volatility in the crypto market. Over the past week, Bitcoin has retraced approximately 10%, landing in the mid-zone of its $84,000 to $94,000 range.

Trader Wealthmanager indicated that Bitcoin has erased all its gains for 2026, having briefly dipped below its yearly opening and point of control (POC). This level is deemed critical for Bitcoin to maintain in the coming days, as falling below it could potentially lead to a decline towards the $80,000 mark.

Analyst Crypto Jelle observed a two-month bear flag structure on Bitcoin’s daily chart, suggesting a significant likelihood of a breakdown. He warned that if Bitcoin loses its current lows, bearish sentiment could take over fully. Similarly, market observer Lyvo Crypto noted that Bitcoin has broken down from the ascending support of this bear flag pattern, indicating a loss of its two-month uptrend. This situation suggests that the momentum is currently in favor of the bears, which could lead to a substantial price drop and a retest of the $78,000 area.

Historical Context

Analyst Crypto Bullet compared Bitcoin’s current price action to its performance in early 2022, noting a resemblance that could imply a major correction is on the horizon. In early 2022, Bitcoin retraced over 40% from its late 2021 peak, followed by a brief recovery and another significant decline. Presently, Bitcoin has retraced approximately 30% from its October highs and is attempting to regain lost ground. However, Crypto Bullet highlighted two key differences from the 2022 scenario: Bitcoin has not yet retested the 50-week and 200-week moving averages, and the timing suggests that the final breakdown may not occur until later in the first quarter.

Despite the current challenges, Crypto Bullet indicated that there could be one final upward movement above $100,000, although he advised caution as critical support levels are being tested.

From author

The current situation surrounding Bitcoin illustrates the volatility and unpredictability inherent in the cryptocurrency market. Analysts are closely monitoring support levels and patterns that could indicate future price movements. The correlation with past price action adds a layer of complexity, as traders weigh historical trends against current market dynamics.

Impact on the crypto market

• Bitcoin’s recent decline has erased its 2026 gains, causing concern among investors and traders.
• The potential for a retest of lower price levels may lead to increased selling pressure in the market.
• Analysts are observing critical support levels that, if breached, could trigger further bearish sentiment.
• The current volatility is influenced by geopolitical tensions, which can affect investor confidence and market stability.
• Historical parallels drawn by analysts may lead to cautious trading strategies as participants navigate potential corrections.