Bitcoin Faces Potential Drop to $80K, Trader Explains Current Market Conditions

Bitcoin risks return to low $80K zone next as trader says dip 'makes sense'

Bitcoin traders encountered new setbacks as Wall Street opened on Friday, with the cryptocurrency hovering near the $90,000 mark.

Key Takeaways:

Bitcoin is inching closer to $90,000, but traders are adjusting their price targets lower.
Current liquidity conditions suggest an initial move to test bids.
Ichimoku Cloud indicators hint at a potential decline that could lead Bitcoin to dip below $80,000.

BTC Price Targets Shift Below $90,000

According to data from Cointelegraph Markets Pro and TradingView, the BTC/USD pair fell nearly 2% compared to Thursday's closing price.

Bitcoin Price, Markets, Price Analysis

After failing to gain momentum at the yearly opening level for 2025, Bitcoin's market participants were eager for further support tests at lower levels. “The order book heatmap displays a weak bid side, with substantial buy walls forming at $86,000 and below,” noted trading account Exitpump in their latest analysis on X.

BTC/USDT spot order-book data for Binance. Source: Exitpump/X

Crypto investor and entrepreneur Ted Pillows emphasized the significance of the $90,000 level based on order-book data from CoinGlass. “There are currently two notable liquidity clusters for Bitcoin: upside liquidity around $94,500 and downside liquidity near $90,000,” he explained.

BTC liquidation heatmap. Source: Ted Pillows/X

Pillows referred to the current market structure as a “clean the lows then decide” scenario. Trader Daan Crypto Trades added, "It’s crucial that Bitcoin maintains the ~$88,000 area in higher timeframes," after analyzing the previous day's trends.

BTC/USDT perpetual contract three-day chart. Source: Daan Crypto Trades/X

Ichimoku Cloud Analysis Suggests a Downward Trend

In light of possible declines, trader Titan of Crypto employed the Ichimoku Cloud framework to project levels potentially approaching $80,000. He indicated a potential support level just below the current local low of $83,900 observed earlier this week.

“Could Bitcoin reach $89,000 next?” he speculated, highlighting several important Ichimoku chart characteristics.

BTC/USDT one-day chart with Ichimoku Cloud data. Source: Titan of Crypto/X