Here’s Why Bitcoin Fall Below $80,000 Could Be A Deep Pit – Analyst

Overview

In recent hours, Bitcoin has fallen below the $80,000 mark, driven by a wave of liquidations as January nears its end. This decline has raised concerns among analysts, particularly regarding the implications of this price movement on the broader market.

What Happened?

Bitcoin experienced a significant drop below $80,000, a development that coincided with notable liquidation events in the cryptocurrency market. Analysts at Kobeissi reported that there were three major liquidation events within a 12-hour timeframe, leading to a combined loss of $1.3 billion. This wave of liquidations has contributed to a fearful market atmosphere, especially following a price slump observed the previous week.

Market expert Burak Kesmeci emphasized the importance of the $80,000 price zone for Bitcoin. Prior to the recent decline, Bitcoin had successfully retested this price level twice, reinforcing its status as a critical support level during a correction phase that began in early October 2025. Each rebound from these retests had hinted at potential trend reversals, demonstrating the market’s technical sensitivity to this price point.

Kesmeci also pointed out the on-chain significance of the $80,000 level, noting that it represents the cost basis for Bitcoin Spot ETFs. The recent decline below this threshold places a substantial number of institutional investors at risk of experiencing unrealized losses. In January 2026, Bitcoin ETFs faced considerable withdrawals, amounting to a total net outflow of $1.61 billion. This trend is expected to escalate, as a sustained price decline below the ETF cost basis could lead to widespread panic-driven redemptions among investors.

In addition to its technical and on-chain significance, Kesmeci noted that the $80,000 price point currently serves as the True Market Mean for Bitcoin.

From Author

The current situation surrounding Bitcoin highlights the volatility and unpredictability of the cryptocurrency market. The combination of liquidations, the psychological impact of key price levels, and the behavior of institutional investors underscores the delicate balance that exists in this space. As market participants navigate these challenges, the implications of Bitcoin’s price movements could have far-reaching effects on both investor sentiment and market dynamics.

Impact on the Crypto Market

• The drop below $80,000 may trigger further liquidations, exacerbating market volatility.
• Institutional investors could face significant unrealized losses, potentially leading to panic-driven sell-offs.
• The current price behavior may influence investor sentiment, contributing to a more fearful market atmosphere.
• The established support levels and potential bearish scenarios could create a cautious trading environment.
• A sustained price drop could impact Bitcoin ETFs and their associated market dynamics, possibly leading to increased withdrawals.
• Conversely, a rebound from current levels could shift momentum back to bullish sentiment, influencing trading strategies.