The post Bitcoin Enters Risk Zone — Could History Repeat with a 50% Drawdown?  appeared on BitcoinEthereumNews.com.

Since last week, the Bitcoin price has dropped from $90,438 to $78,193, registering a loss of roughly 13%. Galaxy Digital’s Alex Thorn expects potential stabilization near $70,000. The momentum indicator RSI at 30% accentuates oversold sentiment in short-term trend, bolstering the potential for a post-correction pullback. The Bitcoin price jumped over 2.3% during Monday’s U.S. market hours to trade at $78,193. The buying pressure came as a short relief rally after a massive sell-off last week which triggered billion dollars in liquidation. However, the on-chain data, weakness at crucial price levels, macro uncertainty, and a lack of near-term catalysts suggest BTC could extend its ongoing correction to sub-$60 levels in coming weeks or months. On-Chain Data Signals Thin Support Between $82K–$70K  Last week, the crypto market witnessed a significant correlation which pushed Bitcoin price below $80,000. The decline accelerated with speed heading into the weekend with Saturday giving out a 10% swing that triggered massive forced exits in derivative markets. Records indicate that bullish liquidations exceed $2 billion, which is one of the largest ever witnessed on exchanges. Exchange figures pegged at Bitcoin’s low at around $75,644 that day, dipping below the mean purchase price for key U.S. exchange traded funds at $84,000 – resulting in a gap of up to 10%. It even got past a tracked entry point of $76,037 and skated close to the annual floor from April of 2025’s policy-driven selloff of $74,420.. Patterns from previous cycles indicate that 40% retreats from records are seldom the final step; they often surge to 50% or more in less than three months. Applied here, that translates to about $63,000. Ownership information on the ledger shows thin activity from $82,000 to $70,000, perhaps pulling down prices to see buying interest there. Key gauges incorporate the mean level of realization…

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Filed under: News - @ February 3, 2026 1:25 pm