Bitcoin Price News: Panic Returns as BTC Tests $75K Support After Sell-Off

Bitcoin (BTC) nosedived during the weekend and lost the $80,000 support as cascade liquidations wiped out billions from the crypto market in just 72 hours.

The market value of cryptocurrencies as a whole has now dropped to $2.6 trillion, down from a recent peak of $4 trillion. Who’s to blame? The October 10 flash crash seems to have been the tipping point for cryptocurrencies.

BTC Daily Liquidations – Source: CoinGlass

The evidence is there. Data from CoinGlass shows how a steep drop started back then, after more than $16 billion worth of long positions evaporated in a matter of hours.

Traders lost big, and they have kept losing day after day since then. Excess leverage has been flushed out, and the result has been a 38% drop from BTC’s latest all-time high.

Bitcoin Hit Out Bearish Target at $74K from January 21

As we anticipated in our BTC price prediction from January 21, the price fell to $74,000, hitting our short-term bearish target for the top crypto following a confirmed bear flag pattern.

Liquidations jumped to $5 billion in the past 5 days, indicating that selling pressure has mounted.

What exactly tipped the scales in favor of bears this time? President Donald Trump revealed his new pick for the Federal Reserve, Kevin Warsh.

Even though Warsh is a veteran Fed governor and a pro-crypto figure, the market did not welcome these changes. Good news is “no news” during bearish cycles, while bad news is a reason to dump everything.

Investors Panic for the Fourth Time in a Year

It is not just BTC that’s falling. Microsoft (MSFT) stock took a big hit last week after reporting underwhelming growth and projections for its cloud-based business.

In addition, both gold and silver fell hard as well, indicating a broad risk-off move across multiple financial asset classes.

Crypto Fear and Greed Index – Source: CoinMarketCap

The Fear and Greed Index is back at “panic” levels once again. This is the fourth time that this sentiment gauge has hit 15 in the past 12 months.

The Trump administration was supposedly “good” for crypto, and it has been from a regulatory standpoint. However, valuations have taken a strong hit due to President Trump’s whims and hostile rhetoric.

BTC Could Bounce Back to $85K But Bears Have the Upper Hand

We may expect some sort of sideways consolidation after this weekend’s sharp drop, as BTC just hit a key support at $75,000.

BTC/USD Daily Price Chart (Bitstamp) – Source: TradingView

The top crypto bounced back strongly from this level in April 2025 and made a new all-time high just a few months after.

Market conditions are not bad enough to invalidate the possibility of a recovery. However, buyers need to show up in force to squeeze sellers out.

The $85,000 support has now turned into the key level to watch and a potential target for BTC if it bounces back. The market will likely retest this level to confirm sellers’ commitment to pushing the token to sub-70K figures.

If buyers manage to push the price above this mark, we could see BTC recapturing $90K in no time. That said, the risk of a breakout below $75,000 is real as bearish momentum is strong.