Bitcoin Price Prediction: BTC Dips 7.5% to $83K as $2B Liquidations Test Key $80K Support
Bitcoin continued to fall this week, dropping toward $83,000 after it could not hold recent support levels.
Quick overview
- Bitcoin's price fell to around $83,000, marking a 7.5% weekly drop as traders await an executive order from President Trump.
- Over $2 billion in crypto derivatives positions were liquidated, primarily affecting Bitcoin and Ethereum long positions.
- Market uncertainty and speculation about future Federal Reserve policies are keeping traders defensive and cautious.
- Technical analysis suggests Bitcoin may continue to decline, with potential targets around $80,500 and $76,400 if selling persists.
Bitcoin continued to fall this week, dropping toward $83,000 after it could not hold recent support levels. This marks a sharp change after weeks of unstable prices, and traders are becoming more cautious as they wait for an executive order from US President Donald Trump. Even without many details, the uncertainty has been enough to drive risk assets lower.
Today, Bitcoin lost about 6.5%, making its weekly drop around 7.5%. Ethereum also fell over 7% to about $2,700, and the total crypto market value dropped to around $2.8 trillion. Investors are now focused on protecting their capital, and digital assets are moving more closely with overall market risk trends.
$2B Liquidations Expose Leverage Fragility
The selloff soon became technical as leverage was reduced across major exchanges. Forced liquidations sped up the decline, showing how sensitive crypto markets are during times of broader financial stress.
Key takeaways from the liquidation wave:
- Over $2 bn in crypto derivatives positions were liquidated
- Bitcoin and Ethereum long positions absorbed most of the damage
- Funding rates reset lower as traders reduced exposure
This situation is not new. When traders lose confidence and there is less liquidity, even small events can cause big price swings. Right now, traders are taking smaller positions, but confidence is still weak.
Trump, Fed Speculation Keep Traders Defensive
Markets are also considering new political risks. Trump has confirmed an upcoming executive order and a policy meeting, and there is ongoing speculation about his pick for the next Federal Reserve Chair. Many see former Fed Governor Kevin Warsh as a top candidate, which raises questions about future interest rates and liquidity.
These developments are important for Bitcoin. As expectations for monetary policy change, crypto prices are more affected by real yields, the strength of the dollar, and overall risk appetite. Until there is more certainty, traders seem hesitant to return in force.
Bitcoin Price Prediction: Charts Signal Pressure Near $80K
Looking at the charts, Bitcoin still looks weak. The price was once again stopped by a downward trendline that has limited rallies since November. On the daily chart, long red candlesticks with small lower wicks show that selling is controlled, not panicked.
Bitcoin has now dropped below $86,400, which could lead to a move toward $80,500, and possibly down to $76,400 if selling continues. The 50-day moving average is still above the price, which supports a bearish outlook. Momentum indicators agree, as the RSI is in the low 40s and there is no sign of a bullish reversal yet.
If Bitcoin does not move back above $90,400 and close above the trendline, any rebounds are likely to be seen as temporary corrections.
Trade idea: Consider selling if Bitcoin rallies below $88,000, with a target of $80,500 and a stop above $91,000.
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