Bitcoin remains under heavy pressure after plunging late last week, with prices still struggling to regain 80,000. The selloff closely follows last week’s crash in precious metals, suggesting a shared catalyst of US President Donald Trump’s decision to nominate Kevin Warsh as the next Fed chair.
For now, broader risk assets have so far absorbed the shock. Equity indexes and volatility measures remain relatively calm, indicating that investors are not yet pricing in a wider risk-off regime. That calm, however, may prove misleading. Given Bitcoin’s persistent correlation with tech stocks, sustained weakness in crypto could serve as an early warning signal that underlying sentiment is deteriorating beneath the surface, even as traditional risk gauges remain resilient.
Technically, the damage is already done. The break below 80,492 confirms that Bitcoin’s broader downtrend from 126,289 record high has resumed. As long as 84,380 support turned resistance holds, deeper decline should be seen to 61.8% projection of 126,289 to 80,492 from 97,922 at 69,619, which is slightly below 70k psychological level.
This target sits just beneath the key 70,000 psychological level, making that zone a critical battleground between medium-term bulls and bears. It coincides with 50% retracement of the entire 2022–2025 advance. A strong rebound from that zone would keep the post-peak price action in a medium-term sideway consolidation. However, decisive break would open the door to deeper unwind toward 49,008.
Should that bearish scenario unfolds, close monitoring of NASDAQ will be essential, as confirmation from equities would point to broader liquidation across risk markets rather than a crypto-only reset.
