Bitcoin is facing a turbulent start to the week, struggling to maintain its position above $80,000 on March 10. After weeks of intense price swings, the market remains on edge. BitMEX co-founder Arthur Hayes has warned that BTC could soon test $78,000, and if that level fails, a further dip to $75,000 is likely. But the bigger concern? A significant cluster of Bitcoin options between $70,000 and $75,000 could trigger heightened volatility, potentially leading to a deeper sell-off.
An ugly start to the week. Looks like $BTC will retest $78k. If it fails, $75k is next in the crosshairs. There are a lot of options OI struck $70-$75k, if we get into that range it will be violent. pic.twitter.com/q4cq0rthGJ
— Arthur Hayes (@CryptoHayes) March 9, 2025
$5 Billion in Liquidations as Market Panic Grows
Over the past four days, more than $5 billion in long positions have been wiped out, signaling growing investor fear. Bitcoin is now down nearly 30% from its January highs and has fallen below the 200-day moving average—a crucial indicator often linked to further declines. The much-anticipated BTC Strategic Reserve initiative has failed to restore confidence, while institutional investors continue pulling funds from Bitcoin ETFs at record levels.
Panic Selling Takes Over
According to 10x Research, this recent drop is a “textbook correction,” typically expected after a strong rally. Analysts point out that 70% of sellers are new investors who entered the market in the past three months and are now panic-selling. The Bitcoin Fear & Greed Index has plunged to 20, reflecting extreme fear among traders. Additionally, trading volumes have dropped significantly, indicating a lack of buying interest at current price levels. Even El Salvador, one of Bitcoin’s biggest supporters, has reportedly paused its Bitcoin-related initiatives, further dampening sentiment.
Buy The Dip? Or Stay Fully Cashed Up?
— 10x Research (@10x_Research) March 10, 2025
Bitcoin's Textbook correction is fully playing out…
👇1-11) Bitcoin follows the price projection outlined in our ‘Bitcoin: Textbook Correction?’ report on February 25. The support structure collapsed once Bitcoin fell below the critical… pic.twitter.com/bHZ7whPSzF
Upcoming Events Could Fuel More Volatility
Bitcoin’s volatility is expected to persist as key U.S. inflation reports are set for release this week. If inflation remains high, the Federal Reserve may continue its tight monetary policies, increasing pressure on risk assets like Bitcoin. Meanwhile, geopolitical tensions are rising, with Canada implementing retaliatory measures against recent U.S. trade tariffs, adding to market uncertainty.
Crypto analyst Jacob King highlights Bitcoin’s sharp drop below $80,000, which has led to massive liquidations. With institutional interest fading and global uncertainty rising, Bitcoin’s next move is critical. If BTC can hold $80,000, a recovery could be on the horizon. However, a breakdown below key support levels could push the price toward $70,000, setting the stage for further declines.
Also Read: Bitcoin Drops to $80K in ‘Ugly Start’—Hayes Warns of Potential $70K Retest
With fear mounting and volatility rising, traders should brace for more price swings in the days ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
