Bitcoin Plunges: Is It a Pit of Despair or a Cosmic Bargain?

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So, there you are, minding your own business, sipping your intergalactic coffee (probably decaf, because who needs that kind of excitement?), when suddenly, Bitcoin decides to take a nosedive below $80,000. Yes, you read that right. Below. Eighty. Thousand. Dollars. It’s like the universe said, “Hold my beer,” and then proceeded to liquidate $1.3 billion in the span of 12 hours. Analysts at Kobeissi, who are presumably wearing their “I told you so” t-shirts, noted three major liquidation events that made the market look like a galactic garage sale.

But wait, there’s more! The market, already quivering like a leaf in a hyperdrive windstorm after last week’s price slump, has now pushed Bitcoin below what Burak Kesmeci (a name that sounds like it belongs to a space pirate, but is actually a renowned market expert) calls a “key price level.” Apparently, this $80,000 mark is not just a number-it’s a psychological, technical, and on-chain fortress. Or, as Kesmeci puts it, “the line in the sand that Bitcoin really shouldn’t cross unless it wants to make institutional investors cry into their spreadsheets.”

Bitcoin Dips Below ETF Realized Price: Cue the Panic Stations

In a recent X post (because who uses email when you can shout into the void of social media?), Kesmeci explained that the $80,000 level is more than just a pretty number. Before Bitcoin’s dramatic breakdown, it had retested this zone twice since the correction phase began in early October 2025. Each rebound was like a high-five from the market gods, reinforcing $80,000 as the ultimate support level. Chart formations even hinted at a trend reversal, which is market-speak for “maybe everything’s fine, or maybe we’re all doomed.”

But here’s the kicker: $80,000 isn’t just a technical darling-it’s also the cost basis for Bitcoin Spot ETFs. So, when Bitcoin falls below this level, it’s like a wake-up call for institutional investors, except the alarm clock is a sledgehammer. Kesmeci points out that this plunge puts a significant chunk of these investors at risk of unrealized losses, which is just a fancy way of saying, “Oops, we might have overpaid.”

In January 2026 alone, Bitcoin ETFs saw withdrawals that totaled a net outflow of $1.61 billion. But hey, who’s counting? Well, everyone, actually. And if the price keeps dropping below the ETF cost basis, expect a wave of panic-driven redemptions that would make a black hole look stable. Oh, and did we mention that $80,000 is also the True Market Mean? Yes, it’s a thing. Apparently, the market has a mean, and it’s not in a forgiving mood.

Market chaos, probably

What’s Next for Bitcoin? Spoiler: It’s Complicated

According to Kesmeci, the future of Bitcoin hinges on whether it can close above or below $80,000 on a weekly basis. If it’s the latter, buckle up for a bearish rollercoaster that could see Bitcoin plummet to $72,000, $68,000, and eventually $62,000. These levels, Kesmeci explains, align with volume profile clusters, which is just a fancy way of saying, “Places where the market might pause to catch its breath before continuing its descent into madness.”

On the flip side, if Bitcoin manages a sustained rebound, the bulls might just roar back to life. The first hurdle? $90,000. After that, it’s the 111-period Simple Moving Average (SMA111) near $95,000, which Kesmeci describes as the “critical level for confirming that maybe, just maybe, we’re not all doomed.” And if Bitcoin can break above the psychological $100,000 resistance, well, that’s when the party really starts-or at least when the uptrend resumes.

At press time, Bitcoin is trading at $77,832, down 7.1% in the past day. So, is this the end of the world as we know it? Probably not. But it’s definitely a reminder that the crypto market is less of a rollercoaster and more of a hyperdrive through uncharted space. Strap in, folks-it’s going to be a wild ride.

More market chaos, definitely

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2026-02-01 12:12