Bitcoin To $80,000? Analyst Warns Of Potential Free Fall As BTC Erases 2026 Gains

As the market erases its 2026 positive factors, Bitcoin (BTC) has fallen to its lowest degree in weeks and is trying to reclaim a vital degree. Some market observers have warned {that a} retest of the November lows is probably going if volatility continues.

Bitcoin Breaks Down From Key Support

On Wednesday, Bitcoin continued to pullback and hit a three-week low of $87,263. The cryptocurrency had been buying and selling between the $90,000-$96,000 vary since its start-of-the-year breakout, reaching a two-month high of $97,924 per week in the past.

However, the crypto market has skilled important volatility over the previous few days, fueled by renewed geopolitical tensions. As a consequence, BTC has retraced 10% previously week, falling to the mid-zone of its $84,000-$94,000 vary.

Amid this efficiency, dealer Wealthmanager noted that the flagship crypto had retraced all its 2026 positive factors, briefly falling under its yearly opening and POC. He added that this can be a essential degree to carry within the coming days, as dropping this space may ship the worth again to the $80,000 mark.

Analyst Crypto Jelle highlighted a two-month bear flag construction on BTC’s each day chart, suggesting a high probability of a breakdown. “Lose the present lows once more, and bears will probably be absolutely again within the driver’s seat,” he asserted.

Similarly, Market observer Lyvo Crypto identified the identical formation, detailing that Bitcoin broke down from the sample’s ascending assist after the latest worth motion and misplaced its two-month uptrend.

To the dealer, this alerts that “momentum is absolutely within the bears’ management” and “if it [bearish momentum] sustains, we may see a free fall” that would doubtless end in a retest of the $78,000 space.

In the case of a breakdown to the November lows, he suggested that “from there, we’ll look ahead to affirmation of a double backside and search for a aid rally.”

BTC To Repeat Its 2020 Price Action?

Crypto Bullet drew a parallel between BTC’s present worth motion and its efficiency in early 2022. The analyst affirmed that the present worth motion intently mirrors its 2022 fractal, which may sign {that a} main correction is forward.

At the time, Bitcoin retraced over 40% from its late 2021 cycle prime, adopted by a “useless cat bounce” at the beginning of 2022 and a second main correction towards new lows.

Now, the flagship crypto shows an analogous performance because it has retraced 30% from the October highs and is at the moment trying to reclaim the misplaced floor. However, Crypto Bullet famous that there are two important variations from its 2022 correction.

First, Bitcoin has but to retest the 50-week and 200-week Moving Averages (MAs). Second, the timing hints that the ultimate breakdown isn’t due till later in Q1.

“If we match the 2022 fractal’s prime and the October 2025 prime, we’ll see there’s nonetheless about 1 month of PA to make that remaining leg up and check the 50-Week MA or the 200-Day MA,” he defined.

He concluded that yet one more pump above the $100,000 is probably going, however suggested warning as the important thing helps are being examined.

As of this writing, Bitcoin is buying and selling at $89,890, a 1.2% enhance within the each day timeframe.