Bitcoin experienced a significant dip over the weekend, edging closer to the $80,000 threshold amid growing concerns over market conditions. The downturn followed increased bearish sentiment, fueled by the U.S. government’s advancing plans to enforce tariffs previously proposed by former President Trump. This development triggered widespread sell-offs in Bitcoin and other cryptocurrencies.
At approximately 7:00 p.m. ET, Bitcoin fell to $80,000, marking a 7% drop within 24 hours. As of the latest data, the cryptocurrency was trading at $81,641, showing a minor recovery from its lowest point.
Arthur Hayes, co-founder of BitMEX, cautioned that Bitcoin could revisit levels below $78,000, pointing to a concentration of Bitcoin options between $70,000 and $75,000. This pricing range could amplify market volatility should the price dip further into these areas.
The sell-off on Sunday saw Bitcoin lose $6,000, pushing the coin closer to testing its low of 2025. On the 4-hour chart, a pattern of consolidation has emerged, with Bitcoin encountering resistance near the $86,000 level and finding support around $81,000. Large red candles suggest long-term selling pressure, while brief green volume spikes reflect failed buying attempts.
According to the Average Directional Index (ADX), the market’s trend strength remains weak at 25, indicating heightened volatility and a continued bearish bias.
Traders are now eyeing potential opportunities depending on price movements. Should Bitcoin fail to break through resistance, short positions may become more appealing. However, a surge in buying volume around the $81,000-$82,000 range could trigger long entries.
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