Bitcoin Loses Key Support: Warning of a Swift Drop to $80,000!
Bitcoin fell below $83,000 as oil prices and U.S. Treasury yields rose, bringing renewed attention to analysts’ warning that a break below this level could trigger a swift drop to $80,000.
According to CoinDesk data for the Asian session on Thursday, October 8, Bitcoin fell 1.6% to just below $82,800. Most major altcoins also posted losses, while reports of possible military action against Iran pushed oil prices higher.
$80,000 Warning for Bitcoin
In its assessment on Tuesday, FxPro said that a drop below $83,000 would signal that sellers had taken control. The company warned that if this level broke, Bitcoin could fall to $80,000 quite rapidly.
Thursday morning’s price action showed that the threshold analysts were watching had been breached. As a result, the $83,000 level, which had been tracked as support in recent days, once again became important in determining whether the decline would continue.
Oil and Treasury Yields Added to the Pressure
After reports that the White House had asked the Pentagon for options for strikes against Iran, Brent crude rose 2% to above $102 per barrel. Supply concerns were also fueled by a storm that halted some oil production in the U.S. and attacks by Iran-backed Houthis on two airports in Saudi Arabia.
The U.S. 10-year Treasury yield rose two basis points to 5.31%. Bitcoin’s two most recent losing days also coincided with periods when oil prices and Treasury yields rose together. CoinDesk’s assessment said that a drop in Brent back below the $100 level it was at on Tuesday could ease this pressure.
Selling was not limited to the crypto market. U.S. stock indexes fell on Wednesday after closing at record highs, while Asian stocks also dropped 1%.
How Were Ethereum and Altcoins Affected?
In the same data snapshot, Ethereum fell 3% to around $2,570. XRP dropped about 4% to $1.42, while Dogecoin fell 3% to just below $0.09.
HYPE and Solana fell more than 2%, while Zcash’s loss remained below 1%. Among the major cryptocurrencies covered in the report, BNB and TRON diverged from the decline, rising less than 1%.
A day before this move, CoinGlass data showed that approximately $550 million in leveraged positions had been liquidated in the crypto market. Most of the liquidations were in long positions opened in anticipation of rising prices.