Bitcoin has dropped below $80,000 as a crypto market downturn erases $1 trillion, raising concerns of further declines. The bitcoin price has fallen approximately 25% from its peak of nearly $110,000, amid warnings of price suppression. Traders are advised against “buying the dip” as analysts assess the depth of the correction and the risk of a market crash.
Technical analysis indicates the next bitcoin price target around $70,000, a strong support level, according to Ruslan Lienkha of YouHodler. However, this scenario depends on negative sentiment persisting in equity markets. U.S. stock indices have shown consecutive declines, but it is premature to conclude the broader uptrend has ended. Markus Thielen of 10x Research notes bitcoin’s price pattern suggests a target in the low $70,000s.
The crypto market’s volatility is exacerbated by U.S. President Donald Trump’s expanding international trade war. The Crypto Fear & Greed Index stands at 21, its lowest since September, reflecting heightened anxiety. With tariffs on Canada and Mexico set for March 5, the stock market anticipates potential economic repercussions. Investors seeking stability may shift capital from volatile assets like bitcoin, which lacks short-term security.
— news from Forbes