Bitcoin stabilizes after sharp drop — analysts warn: next move could break below $80,000

 

After heavy selling on Monday, the crypto market calmed down. Tuesday in early U.S. trading, Bitcoin bounced back above $87,000, up about 3% from the overnight low.

 

As the world’s largest cryptocurrency, Bitcoin has now clawed back some ground. Crypto-related stocks also recovered from Monday’s panic selling. As of now, Bitcoin treasury giant MicroStrategy is up nearly 2%, broker Robinhood is up more than 3%, and USDC stablecoin issuer Circle is jumping over 9%.

 

On the news front, the latest U.S. November jobs report showed unemployment unexpectedly rising to 4.6% — the highest in four years. But the market’s expectation for a Fed rate cut in January hasn’t budged — it’s still sitting at just 24%.

Dead-cat bounce… or real turnaround?

Tuesday morning’s move suggests Bitcoin’s slide from last week’s $94,000 high may have paused for now. But some analysts think the next leg down is coming soon and could easily take it below $80,000.

 

Samer Hasn, senior market analyst at broker XS.com, said the bounce from November’s roughly $80,000 low to early December levels is just a “corrective high.” The next real move is likely lower, probably breaking $80,000 and setting a fresh low.

 

In Tuesday’s market note, Hasn called the current environment “fragile.” Derivatives data backs up the caution: $750 million in long positions were liquidated in the past two days, with about $250 million tied to Bitcoin futures.

 

“Traders are either sitting on their hands before the data or getting forced out — both are feeding downside momentum. Without a clear positive macro trigger to flip sentiment, Bitcoin still has room to fall deeper. Breaking $80,000 is quickly moving from tail risk to part of the short-term conversation.”

 

21Shares crypto investment specialist David Hernandez put it this way: “Right now the market is stuck in a short-term tug-of-war — delayed rate cuts on one side, Bitcoin’s long-term role as a store of value on the other.”

 

“Traders are re-pricing risk, so selling pressure could stick around in the near term and force Bitcoin to defend key support levels. But zoom out: ongoing economic tension actually strengthens the case for smart money accumulating Bitcoin. If the Fed can’t tame inflation without hurting the economy, Bitcoin’s limited supply makes it an essential asset,” he added.