Bitcoin’s drop below $80,000 has traders questioning whether this is a healthy correction or a prime buying opportunity.
What Happened: In a detailed X post on Monday, crypto trader Stockmoney Lizards posited that traders are rushing to buy the dip, but technical analysis suggests Bitcoin’s pullback may not be over yet.
While long-term fundamentals remain strong, history and current price action indicate further downside is possible before the next leg up. The trader flagged several relevant technical indicators:
200-Day Simple Moving Average History:
- Previous corrections (2023 & 2024) saw Bitcoin trade below the 200-day SMA for weeks.
- This pattern seems to be repeating in 2025.
Liquidity Support Zones:
- 2023 correction found support at ~$25,000, 2024 at ~$50,000.
- Current cycle suggests support in the $72,000–$74,000 range.
Short-Term Breakdown:
- Bitcoin broke below its uptrend after two retests.
- A bearish retest signals potential further downside.
- Many traders still hold unrealized gains from the $70,000 to $108,000 move, suggesting more selling pressure.
For the longer term, the trader reaffirms his $200,000 target by year-end, telling his followers to hold on to their positions, as he sees the market in a “healthy consolidation.”
Crypto trader Javon Marks noted that Bitcoin is following a similar hidden bullish divergence that in the past triggered an approximate 90% rally.
This could potentially mark that the market could be gearing up for another strong bullish move.
Source: benzinga.com
