Top Reasons Why Bitcoin Price May Crash to $80,000 Soon

Bitcoin price remained under intense pressure this week as demand for the coin continued falling. BTC was trading at $89,440 on Saturday, down sharply from the all-time high of $126,300. This article explores some of the top reasons why the BTC price may crash to $80,000.

Bitcoin Price Technical Analysis Suggests that it May Crash Soon

The weekly timeframe chart shows that the coin has formed several bearish patterns. This points to more downside in the near term.

It formed a large rising wedge pattern, which is made up of two ascending and converging trendlines. Bitcoin price has already moved below the lower side of the wedge, confirming the bearish outlook.

The coin has also moved below the 50-week Exponential Moving Average. On the other hand, the Supertrend indicator has remained in the red since October last year. In most cases, an asset will remain under pressure when it is below this moving average and the Supertrend indicator.

BTC price has also formed a bearish pennant pattern. That’s made up of a vertical line and a symmetrical triangle pattern.

Therefore, the most likely Bitcoin price forecast is bearish. With this, the next key target is at the November low of $80,400. A drop below that level will point to more downside, potentially to the 50% Fibonacci Retracement level at $71,000.

Spot Bitcoin ETF Outflows are Rising

The other main bearish case for Bitcoin is that demand for spot ETFs has continued to wane recently. Data compiled by SoSoValue shows that these ETFs have continued to shed assets in the past few days.

Spot ETFs shed over $103 million on Friday, bringing the weekly total to $1.3 billion. That’s the worst figure since November last year.

Most outflows hit the iShares Bitcoin Trust (IBIT). It holds $69.7 billion, down from over $90 billion.

American investors show rising capitulation through Bitcoin ETF outflows. They move funds into gold. They also shift investments toward the stock market.

Bitcoin Has Lost its Safe-Haven Status

For years, investors viewed Bitcoin as a safe-haven asset. Its scarcity gave it unique value. Rising demand strengthened this thesis and fueled adoption.

However, the recent performance shows that it is not a safe haven asset. For example, the Bitcoin price dropped this week. Donald Trump boosted his rhetoric on Greenland. He threatened tariffs on the United Kingdom and Germany. He also targeted Denmark with tariff threats.

In contrast, other popular safe-haven assets continued their uptrend, with the gold price soaring to a record high. Gold has been in a strong uptrend since Donald Trump became president and started implementing risky policies like attacking Iran and Venezuela, and implementing tariffs.

Potential Rotation from Bitcoin to Gold and Silver

Meanwhile, Bitcoin price could be at risk as investors continue to rotate to other assets like gold and silver. Gold has jumped to $5,000, while silver has crossed the important resistance level at $100 for the first time.

Investors usually prefer assets performing well. Bitcoin ETF outflows continue. Gold and silver ETFs see strong inflows.

The SPDR Gold ETF (GLD) has added over $15 billion in inflows, bringing its total assets to over $172 billion. The iShares Silver ETF (SLV) has also added billions of dollars in assets.

Some Bitcoin Treasury Companies face rising risk. They may start selling their assets soon. Ongoing underperformance drives this potential action.

For example, GameStop moved its coins to Coinbase Pro this week, a sign that the company has capitulated. Other companies may start selling to pay their debt and use the cash to fund their other initiatives