Crypto Market Rout Deepens: Bitcoin Plunges Below $82,000, Analysts Warn of Further Slide to $70K Amid Massive Liquidations

As global financial markets grapple with mounting uncertainties, the cryptocurrency sector has once again found itself at the epicenter of a significant downturn. Following a severe overnight correction, Bitcoin (BTC) experienced renewed selling pressure this morning, breaching the critical $82,000 mark. Analysts are sounding alarms, cautioning that with key support levels crumbling, the flagship cryptocurrency faces “virtually no clear support below,” potentially paving the way for a descent towards $70,000 in the short term.

Current Market Landscape: A Sea of Red

As of 10:25 AM Taipei time, Bitcoin was trading at $81,401, registering an 8% decline over the past 24 hours. Ethereum (ETH), the second-largest cryptocurrency, mirrored the sentiment, falling 9.5% to $2,707. Other prominent digital assets, including Binance Coin (BNB), Ripple (XRP), and Solana (SOL), also sustained substantial losses, with their values dropping between 7% and 8.6%.

Massive Liquidations Rock the Crypto Ecosystem

The severity of the market correction is underscored by the staggering liquidation data. According to CoinGlass, the past 24 hours witnessed a colossal $1.779 billion in total network liquidations. A significant portion of this, exceeding $1.67 billion, originated from long positions, indicating widespread forced selling from bullish bets. Bitcoin alone accounted for $833 million in liquidations, with Ethereum contributing $431 million. This cascading effect triggered a broad wave of forced liquidations across various altcoins.

This brutal market event impacted approximately 283,515 traders. The most severe single incident occurred on HTX, where a lone trader’s Bitcoin position was obliterated, resulting in an $80.57 million loss and highlighting the extreme volatility.

Divergent Analyst Perspectives: Caution vs. Opportunity

Immediate Downside Risks

Matt Mena, a cryptocurrency research strategist at 21Shares, highlighted the technical breakdown. “After Bitcoin breached the crucial $84,000 defense line, the bears’ next target is the $80,000 level, which served as a significant buying entry point last November,” Mena explained. He further warned that a failure to hold $80,000 could lead to a retest of the $75,000 low observed during last April’s “tariff panic.”

Mid-Term Optimism

Despite the immediate bearish outlook, Mena retains a confident stance on Bitcoin’s medium-term trajectory. He views the current price as an “extremely attractive entry point” for investors. Mena anticipates that, given a favorable macroeconomic environment, Bitcoin could rebound to $100,000 before the end of the first quarter, with a potential to even set a new all-time high of $128,000.

Broader Market Correction and Macroeconomic Headwinds

However, other analysts offer a less sanguine perspective, cautioning against potentially deeper corrections. John Glover, Chief Investment Officer at crypto lending platform Ledn, interprets the current sell-off as part of a larger correction wave that began after Bitcoin reached new highs last October. He doesn’t rule out a further decline to $71,000, which would represent a significant 43% retracement from its historical peak of $126,000.

Glover points to the United States as the epicenter of current market uncertainty, noting a shift of capital towards alternative safe-haven assets like gold and Swiss francs, rather than traditional US dollars or Treasury bonds. While Bitcoin was once hoped to serve as “digital gold,” it is currently still perceived as a risk asset, experiencing sell-offs in tandem with equity markets. Nevertheless, Glover remains optimistic, stating, “I believe this is only temporary, and Bitcoin prices will rebound in the coming quarters.”

Technical Support Vanishing

Adding to the bearish sentiment, Russell Thompson, Chief Investment Officer at Hilbert Group, observed, “All Bitcoin’s downside technical support levels have been broken; I don’t see much support.” He, too, believes Bitcoin could potentially test the $70,000 level.