Bitcoin's Drops Below $80,000: Correction Or Buying Opportunity?

Bitcoin's BTC/USD 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.

Also Read: Raoul Pal Sees Bitcoin, Solana In ‘Healing Stage’, Predicts Market Recovery In Q2

What's Next: Stockmoney Lizards predicts for the short term, more downside is expected.

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.

Read Next:

• Successful Bitcoin Short Trader Places Take Profit Levels Between $70,000-$74,000: Further Drop Incoming?

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