Bitcoin Enters Bear Market, Will It Bounce Up or Will BTC Crash Further

At the time of writing, Bitcoin (BTC) is sitting at around $81,000. There are no signs that the price of BTC will rise again.

Some analysts have suggested that the current momentum could be the catalyst for Bitcoin to rebound, but is that view accurate?

Regardless of optimism or pessimism regarding BTC, there is no denying that Bitcoin (BTC) is indeed entering a bear market.

Bitcoin (BTC) Price Overview

Bitcoin (BTC) is currently trading at $81,840.70, reflecting a 0.93% increase in the past 24 hours, equivalent to a gain of $750.40. 

The cryptocurrency opened at $81,090 and has since experienced fluctuations, reaching a high of $82,390 and a low of $80,840 within this period.

Bitcoin has displayed high volatility during the last few hours, characterized by multiple sharp spikes and corrections. 

Read Also: Bitcoin (BTC) Price Prediction in the Next 100 Years

The highest point reached during this period was $82,390, suggesting strong buying pressure before a correction took place. 

Conversely, the lowest dip to $80,840 highlights moments of selling pressure, possibly from profit-taking traders.

Bitcoin Enters Bear Market or Next Rally?

Bitcoin is currently at a critical juncture, with prices struggling below $80,000. 

Traders and analysts are divided on whether this is just a temporary correction before another rally or if a deeper bearish trend is forming.

Key Market Insights

Liquidations & Exchange Outflows

• A total of $209M in liquidations over the past 24 hours suggests high volatility, with leveraged traders being forced to exit positions.

• 36,000 BTC withdrawn from exchanges in the last 96 hours indicates that investors may be shifting funds to cold storage, a potential bullish signal.

• However, large transactions have decreased by 10.7%, showing signs of reduced institutional buying pressure.

Bitcoin’s next move depends on how it reacts to these key support and resistance levels. If $80K holds, a new rally could be on the horizon. 

However, breaking below $67,250 could lead to deeper corrections and signal the start of a more prolonged bearish phase.

Read Also: How to Buy Bitcoin (BTC)

BTC Next Move Scenarios

Bitcoin (BTC) is currently at a critical decision point, hovering around $80,000. 

The market is experiencing high volatility, with traders debating whether BTC will bounce back for another rally or if a deeper bearish correction is on the horizon. 

Here’s a breakdown of possible scenarios based on the given data:

Bullish Scenario: BTC Holds Above $80K → Rally Toward $87K

Support Strength: If Bitcoin manages to stay above the $80K level, it could signal that the market is absorbing selling pressure.

Exchange Withdrawals: The 36,000 BTC outflows from exchanges in the last 96 hours indicate that investors are moving funds into long-term storage, suggesting confidence in higher prices.

Potential Upside: In this case, BTC could regain bullish momentum, aiming for the $87K resistance level and possibly challenging the $90K zone in the coming weeks.

Bearish Scenario: BTC Breaks Below $80K → Risk of a Bear Market

Loss of Key Support: If BTC fails to hold $80K and continues declining, traders will look at $72K-$74K as the next major accumulation zone where buyers may step in.

Bear Market Confirmation Level: If BTC drops below $67,250, it could confirm a bearish trend, potentially leading to a prolonged market downturn.

Declining Large Transactions: The 10.7% drop in large transactions suggests weaker institutional buying, which could lead to increased selling pressure and deeper corrections.

Read Also: How High Can BTC Go? A Historical Analysis of Price

Technical Indicators to Watch

To confirm the next Bitcoin move, traders should monitor:

RSI (Relative Strength Index) – Is BTC oversold (below 30) or overbought (above 70)?

MACD (Moving Average Convergence Divergence) – Are we seeing a bullish or bearish crossover?

Bollinger Bands – Is BTC testing the lower band (bearish) or pushing towards the upper band (bullish)?

Final Note

Bitcoin is at a critical turning point, struggling to maintain support above $80,000 amid growing market uncertainty. 

The decline in large transactions (down 10.7%) and a surge in liquidations ($209M in 24 hours) indicate weakening buying pressure, raising concerns about a potential bear market. 

If Bitcoin falls below $67,250, it could confirm a deeper bearish trend, with price targets in the $72K-$74K range or lower. 

However, 36,000 BTC withdrawn from exchanges in recent days suggests some investors are accumulating, hinting at long-term confidence. 

A bounce above $80K could trigger a rebound toward $87K, while a failure to hold support may lead to an extended market correction. 

Bitcoin now stands at a make-or-break moment, and its next move will determine whether it regains bullish momentum or enters a prolonged downturn.

FAQ

1. Is Bitcoin officially in a bear market?

Not yet, but it is at risk. A bear market is typically confirmed when BTC drops 20% or more from recent highs and remains in a downward trend. If Bitcoin falls below $67,250, it could signal the beginning of a prolonged bearish phase.

2. What key levels should traders watch?

• $80,000 – Holding this level could lead to a rebound and push BTC toward $87K.

• $72K-$74K – A major accumulation zone, where buyers might step in.

• $67,250 – A break below this point could confirm a deeper bear market.

3. Why is Bitcoin struggling right now?

Several factors are contributing to Bitcoin’s struggles:

• $209M in liquidations over the past 24 hours, leading to increased volatility.

• Large transactions are down 10.7%, indicating weaker institutional demand.

• Uncertainty about macroeconomic conditions and regulatory concerns are affecting market sentiment.

4. Could Bitcoin still bounce back?

Yes, there are bullish signs. 36,000 BTC has been withdrawn from exchanges, which often indicates that investors are accumulating for long-term holding. If BTC holds above $80K, it could regain momentum and push toward $87K or even higher.

5. What should investors do now?

Investors should closely monitor key support and resistance levels. If BTC maintains $80K+, it could be a sign of strength. However, if BTC drops below $67,250, it may be wise to prepare for a deeper market correction. Those looking for long-term opportunities might consider accumulating at key support zones ($72K-$74K).