Bitcoin Price Flash-Crashes to $80,000 Before Rebounding as Market Stress Nears FTX-Era Levels
Bitcoin briefly plunged to $80,524, erasing year-to-date gains amid market stress reminiscent of the FTX collapse.Summary
Bitcoin experienced a significant flash-crash on Friday, hitting a low of $80,524 before recovering to the $84,000 range, marking a drop of over 35% from its all-time high and wiping out all 2024 gains. On-chain data from Glassnode shows realized losses spiking to levels last seen during the November 2022 FTX capitulation, with short-term holders selling heavily. Market structure is showing extreme deviation, trading more than 3.5 standard deviations below the 200-day moving average, a pattern seen only during major past crashes. Analysts attribute the stress to fading rate-cut hopes, traditional market volatility, and potential lingering effects from an October 10 "mechanical glitch" that triggered massive liquidations, with some also pointing to deliberate derivative pressure. Bitcoin Magazine analysts advise caution, suggesting that buying every dip is no longer reliable, as key support levels now act as resistance, and potential value zones may be in the $55K to $65K range if weakness persists; reclaiming $100K is necessary to invalidate the bearish outlook.
(Source：Bitcoin Magazine)