Bitcoin risks free fall to $81K if BTC loses $85K support — Analysts

Bitcoin’s price may decline further, with analysts warning of a potential drop to $81,000 amid ongoing exchange-traded fund (ETF) outflows and market uncertainty.

Bitcoin (BTC) fell to a three-month low of $87,629 on Feb. 25, losing the $90,000 psychological support line for the first time since Jan. 13, Cointelegraph Markets Pro data showed.

Eroding risk appetite among crypto investors was the main reason behind the current sell-off, according to Ryan Lee, chief analyst at Bitget Research.

In the absence of positive catalysts, the correction could take Bitcoin price as low as $81,000, Lee told Cointelegraph, adding:

“Bitcoin price is moving in the consolidation range, with a drop to $89,000 level the bears are pulling back beyond its support levels. The next support levels of around $86,000 and $81,000 can be tested if bearish behavior continues.”

The correction occurred despite another $2 billion Bitcoin investment from Michael Saylor’s Strategy, shortly after raising $2 billion in a senior convertible note offering, Cointelegraph reported on Feb. 24.

The lack of a positive price response suggests Bitcoin may need significantly more momentum to recover, Lee added.

Related: Bitcoin tumbles under $90K amid ETF sell-off, mounting liquidations

Bitcoin risks $1 billion long liquidations

Bitcoin’s downside may hedge on the key $85,000 support, as a correction below would trigger over $1 billion worth of leveraged long liquidations across all exchanges, CoinGlass data shows.

“The $85,000 level is crucial — if BTC breaks below this support, it could trigger further declines,” Hong Yea, the co-founder and CEO of hybrid crypto exchange GRVT, told Cointelegraph, adding:

“Geopolitical concerns, economic uncertainties, and unpredictable policy changes affecting broader business and economic issues could drag BTC below $85,000 in the short term.”

Related: $36T US debt ceiling signals Bitcoin correction after Trump inauguration

Last week’s $1.4 billion Bybit hack, the largest hack in crypto history, also “dealt a critical blow to the market, though its impact is unlikely to last long,” he concluded.

Bitcoin’s decline followed another wave of selling in US spot Bitcoin ETFs, which recorded more than $516 million in net outflows on Feb. 24 alone. The ETFs have now experienced six consecutive days of selling, according to data from Farside Investors.

Bitcoin’s price has fallen by over 7% in the six days since the ETFs began their six-day selling spree on Feb. 18.

Magazine: BTC above $150K is ‘speculative fever,’ SAB 121 canceled, and more: Hodlers Digest, Jan. 19 – 25