Bitcoin’s recent price slump below $80,000 has left many market participants and institutions uncertain about the future of the cryptocurrency. The introduction of new tariffs on China and potentially the UK has only added to the chaos, leading institutions like Blackrock to liquidate billions worth of BTC & ETH ETF holdings. This selling pressure has intensified the bearish trend, wiping out the gains made in the past 6 months and signaling a rough start for the crypto market.
Short liquidations have started to outperform longs as traders have turned bearish on Bitcoin. Data from Coinglass shows a significant accumulation of Bitcoin shorts, outnumbering longs by a ratio of 10:1. The chart reveals a massive cluster of shorts around $78,565, with a potential break below this level threatening to push the price below $75,000.
The weekly chart of Bitcoin paints a grim picture as a single candle has erased months of gains. Bullish sentiment is waning, and the price is approaching crucial support levels. Failure to defend these levels could lead to a 20% pullback, dragging prices below previous highs.
The current support level is crucial, having previously acted as a strong resistance during the last bull run. Bulls need to step in and trigger a rebound to avoid a repeat of past patterns. If the support at $72,207 is breached, selling pressure may intensify, bringing prices closer to previous highs around $69,000. While bullish intervention is possible, bears are likely to maintain control until bottoms are reached.