- Bitcoin rebounds above $81,500 after a tech-led sell-off pushed prices near $80,000.
- Crypto liquidations wiped out $315 million in long positions as Bitcoin fell from $84,800.
- Analysts warn of a possible drop to $75,000, while $80,000 support remains key to recovery.
Bitcoin has rebounded above $81,500 after a sell-off in the tech market caused its price to dip near $80,000.
CoinMarketCap data shows Bitcoin falling from $82,444 to a daily low of $80,841 before recovering to $81,769 at press time. The recovery suggests buyers are attempting to defend the $80,000 area.
The rebound follows a reversal from Wednesday’s high near $84,800, as concerns over technology stocks and AI spending triggered losses in financial markets.
Tech Sell-Off Sparks Bitcoin Liquidations
Bitcoin’s initial decline followed an intense sell-off in U.S. equities on Thursday, October 22, as AI spending, technology company earnings, and escalating geopolitical tensions weighed on risk appetite.
The Nasdaq Composite fell 2.6%, its worst session since June, while the S&P 500 dropped 1.21%. Losses among major technology stocks included Meta Platforms, which fell 6.98%, and Nvidia, which declined 4.4%.
The weakness subsequently spread to Asian markets. South Korea’s Kospi fell 2.3%, and Japan’s Nikkei 225 lost 1.6% during Friday morning trading.
Bitcoin has increasingly traded alongside risk-sensitive technology stocks. The latest sell-off illustrates how concerns over AI valuations and corporate spending pressure crypto prices even without a Bitcoin-specific catalyst.
The decline also triggered massive liquidations in the crypto leveraged market. Analyst CryptoReviewing reported that Bitcoin plunged from $84,800 to $81,200, liquidating $315 million in long positions in less than 24 hours.
The liquidation pressure intensified the downfall as traders who had bet on higher prices were forced out of their positions. However, the subsequent rebound indicates that Bitcoin found buyers after approaching the $80,000 level.
Is Bitcoin’s $80,000–$81,000 Support Zone Holding?
Bitcoin’s rebound from $80,841 has put the $80,000–$81,000 range in focus. Should Bitcoin stay above $80,000 and climb past $82,000, the next key level to watch would be $84,800.
However, CryptoReviewing warned that Bitcoin could drop toward $78,000–$81,000, triggering liquidations. At the same time, the $82,000–$87,000 range has about 1.5 times more liquidation clusters, potentially attracting price movement in that direction.
While these liquidation zones can lead to sharp price swings, they do not guarantee which way Bitcoin will move.
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Bitcoin Could Drop to $75,000
Despite Bitcoin’s recent rebound, analyst DANNY believes another drop will happen before a bigger recovery. He argues Bitcoin remains stuck between $81,000 and $83,000 and warns that traders expecting an immediate rally will be caught off guard.
DANNY’s forecast suggests Bitcoin will fall from $82,000 to $75,000, drop further to $67,000, recover to $71,000, and eventually rally to $109,000. This scenario points to another possible sell-off before a stronger recovery. This analyst highlights an ambitious outlook for Bitcoin to even reach $230,000 years ahead.
BTC Rebound Faces a Key Test
In sum, Bitcoin’s move back above $81,500 shows that buyers have responded to the latest decline, but the recovery remains tentative. The technology sell-off, geopolitical uncertainty, and liquidation activity continue to influence short-term price action.
The next move around $80,000–$82,000 will determine whether the recent drop was a temporary shakeout or the beginning of another downward leg.
Holding above $80,000, followed by a reclaim of $82,000, would strengthen the case for a recovery toward the $84,800 area. Conversely, a renewed break below $80,000 could expose the $78,000 region and the liquidity pool identified by CryptoReviewing.
Bitcoin is attempting to stabilize after a sharp risk-off move, but the latest rebound has yet to confirm that the $80,000 support zone will hold.
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Related: Asia Sell-Off Tests BTC’s $81,650-$82,350 Demand Zone as London Eyes $84,377 Rebound
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