Bitcoin hits a seven-month low, falling below $82,000. What’s next for investors?

Bitcoin fell to a seven-month low and came dangerously close to the $80,000 mark, a level below which analysts believe the cryptocurrency could face much bigger losses. The world’s largest digital asset fell to $80,553, while ether fell to a four-month low, as cryptocurrencies led a broader retreat from riskier assets amid growing concerns about high technology valuations and renewed uncertainty around US interest rate cuts.Often seen as a gauge of investors’ risk appetite, crypto’s sharp declines reflect the increasingly fragile mood in the markets. High-flying AI stocks have stumbled, causing Bitcoin to lose nearly 13% this week alone. The decline follows a powerful rally earlier this year that pushed Bitcoin above $120,000 in October, supported by improving sentiment towards crypto globally.

“Bitcoin’s break below $82,000 comes amid a broad market unwind, with more than $2 billion in leveraged positions liquidated within 24 hours,” Riya Sehgal, research analyst at Delta Exchange, said macro conditions have changed rapidly.However, Sehgal noted that despite selling pressure from large holders, the steady accumulation around $85,000 suggests dip buyers are taking action. “Bitcoin’s momentum reset is nearing its end, a phase that has preceded sharp reversals in previous cycles,” she said. Technically, the cryptocurrency is in a critical support zone at $82,000; losing that level could pose downside risk towards $78,000. On the other hand, clawing back $90,000 would put a step toward $98,000 back on the table.Ethereum remains under pressure after falling below $2,700. The immediate support is at USD 2,600, followed by USD 2,450. Experts say ETH needs to climb back above $2,800 to stabilize; if not, a drop to $2,300 is possible, with broader trend indicators still leaning bearish.

Across the crypto board, Sola fell 5% to $125, while BNB fell more than 4% to $820. Both are down 12% weekly. Bitcoin briefly reached $81,629 in London trading before recovering towards $84,166, but remains down 23% this month – the steepest monthly decline since the 2022 crypto meltdown. Open interest in Bitcoin perpetual futures is down 35% from October’s peak of $94 billion, signaling a sharp decline in leveraged positions. Market maker Keyrock noted that traders are hesitant to re-enter the market “in size,” with activity now well below recent highs.

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