Bitcoin, the world’s largest cryptocurrency by market capitalization, has extended its price decline, trading below the $80,000 level amid weakening market sentiment. On Saturday, the flagship digital asset was down 6.53%, changing hands at approximately $78,719.63.
The downturn follows a disappointing close to 2025 for the broader crypto market. Since reaching a record high in October, Bitcoin has lost nearly one-third of its value, including a 4.2% decline in January alone. Ether has fared worse, sliding more than 40% from its all-time highs recorded last summer.
This sustained slump has persisted despite equity markets hovering near record levels, supported by broad-based gains and optimism that economic growth will continue. A weaker U.S. dollar has also driven investors toward alternative assets as part of the so-called “debasement trade,” yet Bitcoin has struggled to benefit meaningfully from this shift.
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Market structure suggests Bitcoin has entered a cautious phase after failing to maintain its recent recovery. While the pullback has been orderly rather than panic-driven, indicators of weakening demand are becoming increasingly apparent. Spot buying remains subdued, leverage is continuing to unwind, and selling pressure persists beneath the surface. Collectively, these factors increase the probability of Bitcoin revisiting lower support levels, with the $75,000 region emerging as a critical zone to monitor as early February approaches.
Since dropping below the $100,000-mark, Bitcoin has slipped into what many analysts describe as extreme bearish conditions. Technically, the price has broken down below a rising wedge pattern, triggering a strong descending trend. A brief upside correction followed, but this has since given way to renewed downside pressure.
In a post on X, analyst Maelius shared a chart indicating that Bitcoin could still fall below $60,000 before establishing a firm bottom. He also drew attention to Bitcoin dominance (BTC.d), noting that historically, BTC.d tends to crash after Bitcoin tops—a pattern observed during the 2017 and 2021 market cycles. According to Maelius, this characteristic sell-off in BTC.d has not yet occurred.
He suggested that the absence of a sharp decline in BTC dominance could imply that Bitcoin may not have fully topped yet. While some fractal analysts argue that Bitcoin has already peaked, Maelius questioned why BTC.d has not experienced a proper sell-off and appears only positioned to do so in the near future.
The analyst further noted that it remains possible for Bitcoin to rally back toward previous highs even as BTC dominance eventually declines. He added that BTC has never been this elevated or appeared this technically bearish during periods when Bitcoin was already firmly in a bear market. In an earlier post, Maelius described Bitcoin’s price action as an attempt to “confuse both sides” of the market.
As analysts debate the underlying drivers of Bitcoin’s recent weakness, Thomas Perfumo, global economist at Kraken, pointed to liquidity conditions as the primary factor shaping current price action. Perfumo noted that cryptocurrencies have continued to underperform relative to precious metals, even as rate cuts in 2025 have reduced nominal borrowing costs.
Outlook
Looking ahead, Bitcoin’s near-term direction is likely to hinge on liquidity conditions, broader risk sentiment, and the market’s reaction to key technical support levels. A sustained break below the $75,000–$74,500 zone could open the door to deeper corrections, potentially validating more bearish projections toward the $60,000 region.
Conversely, a strong defense of this support may provide the foundation for a stabilization phase or a renewed attempt at recovery. Until clearer signals emerge—particularly from Bitcoin dominance and on-chain demand metrics—market conditions are expected to remain volatile and cautiously bearish.