Bitcoin is heading into a critical weekend, having struggled to maintain the $83,000 mark and now confronting a daunting threshold at $80,000.
Market analyst Benjamin Cowen has indicated that if Bitcoin closes below $83,000 on October 25, it could intensify his negative outlook for the remainder of 2026. This alert comes as Bitcoin faces headwinds beyond its own market dynamics.
Significance of Bitcoin’s $80,000 Benchmark
The recent unsuccessful price spike has impacted optimistic investors. Within a single four-hour period, liquidations saw long positions account for $91.19 million out of $95.22 million in total crypto liquidations.
Additionally, analysts at Glassnode report that companies retaining Bitcoin on their balance sheets have, on average, acquired it at approximately $80,000 per coin.
Should the price dip below this mark, it would likely push corporate treasury positions into the red. While it wouldn’t necessarily prompt immediate selling, it may erode trust in the asset.
In a different analysis, BeInCrypto pinpointed $77,876 as the next critical support level in case of continued selling, with additional support ranging roughly from $76,700 to $72,500.
Moreover, US spot Bitcoin ETFs suffered approximately $322 million in losses on October 22, indicating a decline in institutional demand.
What Lies Ahead for Bitcoin Next Week?
The upcoming calendar presents limited hope. The Federal Reserve convenes on October 27-28, and Cowen anticipates that interest rates will remain steady. The inflation figures for September will be released on October 29.
Complicating matters further, Brent crude oil prices closed at $116.72 on Friday amid heightened supply concerns from the Middle East. High energy prices could sustain inflationary pressures and, coupled with rising Treasury yields, make high-risk investments less seductive.
Historical trends can also bolster bearish sentiment. According to Binance Research, Bitcoin’s average decline during previous U.S. midterm election years stands at 56%. However, this data encompasses only three past cycles, positioning it as a cautionary tale rather than a firm forecast.
Nonetheless, there exists a clear path for Bitcoin to overcome Cowen’s pessimistic outlook.
At this moment, the key test is whether buyers will protect the $80,000 level. A sustained climb above $83,000 would weaken the bearish narrative.
A fall below $80,000 could trigger further selling just as the U.S. midterm elections in November draw near.
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Read the Original story Bitcoin Faces Make-or-Break Weekend as Market Crash Fears Grow by Kamina Bashir at beincrypto.com