Bitcoin (BTC) experienced a sharp decline over the weekend, falling 7% to a 25-day low of $78,964, marking its first drop below the $80,000 mark in nearly a month. The downturn, driven by escalating global trade tensions and fading liquidity, resulted in over $597 million in crypto liquidations, with Bitcoin accounting for $203 million of the total.
The drop follows a brief rally on Thursday, triggered by China’s announcement of retaliatory tariffs on U.S. imports, which had temporarily lifted Bitcoin and other altcoins like Solana and Ethereum. This surge was seen as a flight to cryptocurrency as a hedge against market uncertainties. However, as U.S. markets closed and liquidity dried up, bearish momentum took over, leading to a steep price correction.
In the 24-hour period following the price dip, more than 205,000 traders were liquidated, with the majority of the losses ($514 million) coming from long positions, indicating that bullish traders were caught off guard by the market’s sudden reversal. Altcoins such as Solana, XRP, and Dogecoin were also hit hard as the correction in Bitcoin triggered a broader market sell-off.
The technical outlook for Bitcoin remains bearish after it breached key support levels, including the $80,700 mark. With the 50-day and 200-day moving averages now acting as resistance, the next potential support is at $76,000. Traders are watching closely to see if Bitcoin can recover or if further downside risk toward $72,500 materializes.
As Bitcoin struggles to regain lost ground, the focus shifts to whether bulls can defend critical support levels, or if the market will continue its downward trajectory into lower liquidity zones.
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