Finance News

Story: Bitcoin Crashes Below $87K as Bears Target $84K Support

By Pankaj K

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Bitcoin got hammered last week. The cryptocurrency closed near $86,588 after briefly hitting $98,000 just seven days earlier, leaving traders scrambling to figure out what comes…

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Bears aren't done yet. They're pushing hard to break the $84,000 support level, hoping to drag prices down into the low $70,000 range where things could get really ugly.

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If bears manage to close below $84,000, Bitcoin could drop fast to somewhere between $72,000 and $68,000.

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Bulls face a mountain of resistance ahead. They need to reclaim $88,000 first, then push through $91,400 and $94,000 before even thinking about challenging that $98,000 peak again.

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On January 26, analysts from Feral Analysis said bears keeping their momentum could send Bitcoin testing those lower support levels around $72,000.

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But some traders aren't giving up hope just yet. Juan Galt, a crypto strategist, believes Bitcoin holding above $84,000 might attract fresh buying interest.

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Institutional money got spooked too. On January 25, several hedge funds reportedly moved to hedge their positions, expecting more price drops ahead.

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Galaxy Digital jumped into the conversation on January 27. Mike Novogratz, the company's CEO, said the short-term outlook looks grim but long-term investors might benefit from…

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CoinDesk reported retail investors started looking at alternative cryptocurrencies as Bitcoin struggles.

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Binance announced on January 26 it would temporarily adjust margin requirements for Bitcoin trading pairs, citing risks from current price volatility.

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Technical indicators aren't painting a pretty picture either. Last week's price action ended the recent bounce, with Bitcoin falling below the 100-week simple moving average.

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Glassnode reported on January 28 a surge in Bitcoin withdrawal activity from major exchanges.

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Chainalysis dropped another bombshell on January 30. Their report showed Bitcoin's recent price movements have been heavily influenced by large transactions from just a few key…

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Market sentiment hit rock bottom. The Crypto Fear & Greed Index plunged to its lowest level in months as of January 31.

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The Federal Reserve's recent hawkish stance on interest rates has added fuel to Bitcoin's decline.

The Currency Analytics

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