The recent downturn in Bitcoin has sent shockwaves through the cryptocurrency market, as the price fell below the crucial $80,000 support level, reaching a nine-month low. The decline, which amounted to a 6% drop, brought the token down to $77,082 before it experienced a slight recovery. This marks the lowest price point for Bitcoin since April 2025.
Data from BeInCrypto indicates that this price movement pushed Bitcoin beneath vital on-chain metrics for the first time in years. According to information from Glassnode, Bitcoin has dropped below its True Market Mean, currently at $80,500, for the first time in 30 months. The last occurrence of such a breach was in late 2023, when Bitcoin traded at approximately $29,000. Historically, such a breach has been indicative of a transition from a bullish phase to a mid-term bearish market.
The implications for Bitcoin holders are severe, as the Short-Term Holder Cost Basis has risen to $95,400, while the Active Investor Mean stands at $87,300. With the current market price significantly lower than these averages, traders are facing a considerable burden of unrealized losses.
This technical breakdown has initiated a dramatic deleveraging event across derivatives exchanges worldwide. Data from CoinGlass reveals that this collapse resulted in the liquidation of approximately $2.58 billion in trader positions. The majority of these liquidations were concentrated in long positions, which accounted for $2.42 billion of the total losses. This incident represents the most substantial long liquidation event in the past three months.
Ethereum traders were notably impacted, suffering $1.15 billion in liquidations, while Bitcoin-related liquidations exceeded $772 million. The massive “long squeeze” reflects how traders, overleveraging their positions in a bid to maintain the $80,000 support, were overwhelmed by the swift downward momentum.
According to Ki Young Ju, CEO of CryptoQuant, this significant price drop can be attributed to a depletion of Bitcoin“s buyer liquidity. He noted that the Realized Cap has effectively flatlined, indicating a lack of fresh capital necessary to sustain a bullish market. Ju suggested that as early investors continue to take profits from their holdings accumulated during the 2025 surge, there remains no new institutional investment to absorb the current supply. He anticipates that the market may enter a period of “wide-ranging sideways consolidation” until a new price floor is established.
