Bitcoin Plunges Below $80K Amid Tariffs, ETF Outflows

Bitcoin's price has experienced a significant downturn in recent days, falling below $80,000 for the first time since November 11. This decline marks an 18% drop since the start of the week and a 27% decrease from its all-time high of $109,588 reached on January 20. Several factors, including newly imposed Trump tariffs, large-scale outflows from spot BTC ETFs, and exceptionally high levels of liquidations in the futures markets, have contributed to the downward pressure on the cryptocurrency.

Despite the current bearish sentiment, as indicated by the Fear and Greed Index at 16 ("Extreme Fear"), some analysts believe that these conditions could set the stage for a potential rebound or further downside. Renowned crypto analyst Scott Melker, also known as "The Wolf Of All Streets," highlights a developing bullish divergence on multiple timeframes, suggesting that Bitcoin's price could be poised for a rebound.

Technical analyst Tony "The Bull" Severino, CMT, believes the market may be tracing out a familiar corrective pattern similar to what occurred in 2021 and 2022. He suggests this pattern could take Bitcoin's price well into late 2025, potentially reaching as low as $75,000 if the same higher degree fractal is followed to the 0.5 Fib retracement. However, Severino cautions traders not to see Bitcoin tag the monthly Parabolic SAR, currently located at $75,742, as a breach of that level could signal a deeper correction.

Prominent trader Josh Olszewicz (@CarpeNoctom) tracks the Ichimoku Cloud for key insights and points to a possible retest of Bitcoin's weekly kijun at $74,000 if the current trend continues. Analyst Daan Crypto Trades (@DaanCrypto) draws parallels with previous market cycles when Bitcoin's Daily RSI dipped to the 20 level, noting that the last time this occurred was in August 2023 when Bitcoin was trading at $25,000.

Ki Young Ju, CEO of CryptoQuant, highlights the role of liquidity in determining Bitcoin's trajectory. He notes that spot volume was highly active around $100,000 but