Why Bitcoin Dropped Below $80,000: Insights from Analysts

In recent hours, Bitcoin has fallen below the $80,000 mark, marking yet another wave of liquidations as January nears an end with notable volatility. Analysts from Kobeissi have reported three significant liquidation events in the last 12 hours alone, resulting in a staggering loss of $1.3 billion. With the market feeling fearful after last week’s price decrease, Bitcoin has slipped beneath this crucial price level. Market expert Burak Kesmeci points out that Bitcoin’s reaction to this $80,000 range is critical for determining the market's future direction.

Key Takeaways

Bitcoin has recently dropped below the key price level of $80,000 due to massive liquidations in the market.
Market analyst Burak Kesmeci emphasizes the importance of the $80,000 mark, which serves as a support level and the cost basis for Bitcoin Spot ETFs.
A significant bearish scenario could unfold if Bitcoin does not maintain its position above $80,000, potentially leading to further declines.
Conversely, a rebound could shift momentum back to the bulls, with $90,000 and $100,000 as key resistance levels to watch.

Bitcoin

Understanding the Current Bitcoin Trends

Burak Kesmeci has emphasized the technical and on-chain significance of the $80,000 price level for Bitcoin in a recent post on X. Before the recent decline, Bitcoin had tested this level twice during a correction phase that began in early October 2025. Each recovery attempt reinforced $80,000 as a vital support level, with certain chart patterns suggesting a potential trend reversal. This highlights the market's susceptibility to this key level before the recent downturn.

Kesmeci also points out that the $80,000 price range plays a crucial role as the cost basis for Bitcoin Spot ETFs. Thus, the recent drop below this threshold exposes a significant number of institutional investors to unrealized losses. In January 2026 alone, Bitcoin ETFs saw substantial withdrawals, resulting in a net outflow of $1.61 billion. As prices remain below the ETF cost basis, a growing number of investors may experience panic-driven redemptions. Besides its on-chain and technical relevance, Kesmeci notes that $80,000 currently represents the True Market Mean.

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Source: @burak_kesmeci on X

Future Prospects for Bitcoin

Burak Kesmeci suggests that a bearish scenario would require Bitcoin to close weekly below the crucial $80,000 support level. If this occurs, there’s a risk that bearish momentum may strengthen, potentially pushing Bitcoin down toward $72,000, $68,000, and ultimately $62,000. These levels correspond with notable clusters in the trading volume profile, indicating regions where liquidity may gather, causing temporary price stabilization.

On the flip side, a bullish scenario could emerge if Bitcoin rebounds from its current position. Kesmeci states that the first major resistance to overcome is at $90,000, followed by a critical 111-period Simple Moving Average (SMA111) around $95,000, which would confirm a medium-term trend reversal. Breaking above the significant psychological barrier of $100,000 would benefit the bullish outlook and signal a potential continuation of the broader uptrend. As of now, Bitcoin is trading at $77,832, reflecting a 7.1% decrease within the last day.

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BTC trading at $78,770 on the daily chart | Source: BTCUSDT chart on Tradingview.com