Bitcoin (BTC) Price Dips Below $80,000, Sending Jitters Across Crypto Market

Bitcoin took another blow on March 10, retreating below $82,000 and sending jitters across the crypto market. The latest loss in value for the world's top digital asset comes after weeks of decent gains.

Crypto traders were left in a state of unease on Thursday as Bitcoin dropped below the $82,000 level. This follows several weeks of recovery from the lows of 2024, and it has traders wondering if this is just a temporary blip or the beginning of a deeper correction.

After a period of recovery from the lows of 2024, the world’s top digital asset is now trading at around $79,000. This latest loss in value follows weeks of decent gains for the crypto, which saw it recover all the way from the $65,000s to the $80,000s.

However, the cryptocurrency stalled around the $84,000 level, which had been a key resistance zone in recent weeks. Failure to break through this level led to a return to the lower levels of support.

Important Levels To Monitor

Arthur Hayes, the chief investment officer at Maelstrom and co-founder of BitMEX, anticipates that Bitcoin may encounter resistance at $78,000. He describes Bitcoin’s dismal showing as an “ugly start” to the week.

“If we break the strong support at $75,000, the next one is not going to be until around $70,000 to $72,000.”

Investors have expressed concerns about the drop, particularly those who have recently entered the market. The market analysis firm 10x Research described the dip as a “classic correction”. The company also revealed that traders who bought the coin in the last 12 weeks accounted for about 70% of the selling pressure. Ppanic selling from new investors may worsen volatility.

Status: Extreme Fear

Now, the Bitcoin fear and Greed Index, which measures market mood, has dropped into “extreme fear,” reaching a reading of 20. This is a stark contrast to the past few weeks, which saw optimism in the market. A low rating like this usually indicates that traders are skittish, which could lead to more short-term price swings.

Meanwhile, the majority of Bitcoin options traders are at the $70,000 to $75,000 strike, according to data. As Bitcoin approaches these levels, traders could close their positions, which would generate more volatility.

Upcoming Inflation Data May Impact Prices

The upcoming U.S. inflation report could significantly influence the subsequent course of action for Bitcoin. Investors are closely monitoring the U.S. Federal Reserve’s monetary policy, as any indication of tighter or looser financial conditions could impact the price path of Bitcoin.

A surge in inflation that exceeds expectations could increase the likelihood of additional rate rises, which would exert pressure on risk assets and Bitcoin. Conversely, a decrease in inflation could alleviate market volatility and promote stability.