Bitcoin Crash Explained: Will BTC Fall Even Lower?

Bitcoin’s price fell sharply this week due to a mix of negative signals from charts, blockchain data, and the broader economy. The drop has wiped away most of its gains for the year and triggered a liquidation of positions held by less resilient investors.

Its current price is around $84,482, which is a big drop of roughly 7% in the last 24 hours alone.

On-chain analytics show one of the main reasons for the drop – realized losses have surged to levels last seen during the FTX collapse. Most of this panic selling is coming from people who bought Bitcoin recently, showing they are giving up and selling at a loss. Glassnode’s reports and charts highlight how short-term holder supply in loss has jumped and realized-loss metrics have spiked.

Additionally, the selling has been amplified by whale activity. Arkham Intelligence flagged an early adopter, Owen Gunden, who has (approximately $1.3 billion) since late October, completing a final transfer to Kraken this week. It represents one of the largest single-wallet exits of this year, and big, concentrated sales like this add immediate downward pressure on price and liquidity.

Institutional flows have not helped either. For instance, US spot Bitcoin ETFs recorded record outflows in mid-November, with BlackRock’s IBIT seeing a single-day withdrawal of roughly $523 million. This shows that large institutions are pulling back from crypto as they become more cautious, removing an important pillar of buying pressure from the market.

Technical indicators further define the bearish outlook, as crypto analyst Ali Martinez noted that , which has often warned of major price drops in the past.

What’s more, Ted Pillows, a prominent figure in the crypto industry, shared Bitcoin’s trading data on Binance, showing a large number of buy orders placed between $80,000 and $82,000, which could act as a price floor. However, he warned that if this doesn’t hold, Bitcoin will drop even more to $74,000.

As it stands now, it doesn’t look very good for Bitcoin. The price could go downward if people keep selling at a loss, large investors continue to exit, and money keeps leaving Bitcoin ETFs. Currently, the $80,000 price level seems to be a key area to watch.