Bitcoin has dipped below $80,000, experiencing a decline of over 27% from January’s highs. This recent drop has halved the gains made since early October, with momentum at the 50.0% Fibonacci retracement level reinforcing the pullback.

Notably, Bitcoin has broken below the 200-day moving average, indicating increased selling pressure. The breach of the 100-day moving average and the $90,000 mark triggered significant selling activities, leading to concerns of a possible drop towards $70,000.

This week has been challenging for risk assets as the dollar remains strong. Bitcoin’s performance has worsened relative to Ethereum, influenced by the ByBit hacking incident, potentially foreshadowing more volatility.

Historically, Bitcoin’s dips do not always conform to typical market trends. Previous declines have seen rebounds, but caution remains essential given past price fluctuations.

Analysts advise careful interpretation of these technical indicators. The current selling pressure aligns with declines in other markets, suggesting a risk of a broader selloff across various asset classes.

Market conditions remain unsettled, and the latest technical developments demand close attention. The recent drop below $80,000 cannot be viewed in isolation, as it erases nearly half the gains made since early October. From a momentum perspective, the 50.0% Fibonacci retracement level appears to be reinforcing further pullbacks, suggesting a lack of immediate buying pressure.

The downward move has coincided with increased selling interest, as reflected in Bitcoin’s break below the 200-day moving average. Historically, breaches of this long-term indicator tend to foster uncertain sentiment. Selling accelerated when the 100-day moving average gave way, and the $90,000 threshold was lost. Now, with levels below $80,000 in focus, the risk of a further move toward $70,000 cannot be ignored.

Broader market conditions have played a role in shaping this movement. The dollar remains resilient, which has created difficulties for risk assets. Bitcoin’s weakness—particularly when compared to Ethereum—suggests that external disruptions such as the ByBit security breach could be adding another layer of stress. If last week’s underperformance develops into a sustained trend, further volatility may lie ahead.

Patterns seen in previous downturns suggest that rebounds are not out of the question. However, history also demonstrates that recoveries are not always straightforward. While past declines have been followed by rapid recoveries at times, they have also led to extended periods of lower prices. Given the nature of recent price action, it would be premature to assume that a swift recovery is imminent.

Technical indicators point to conditions that warrant close monitoring. The broader decline in markets suggests that selling pressure is not confined to Bitcoin alone. With other asset classes also facing headwinds, there is a risk that weakness may extend further across multiple sectors. Keeping a close eye on key levels and broader correlations will be essential in the coming weeks to assess whether current conditions stabilise or deteriorate further.