Bitcoin Price Drops After $85,000 Rejection, $80,000 Test Looms

Bitcoin's price has seen a significant drop, erasing gains from the previous two days after facing rejection near the $85,000 mark. The cryptocurrency slid approximately 4% to an intraday low of $81,652 on Bybit, with analysts now focusing on $80,000 as the next crucial support level.

According to data from Glassnode, corporate Bitcoin treasuries are currently holding BTC at an average cost basis of around $80,000, a level that has been maintained since September 18. However, there has been a noticeable decline in treasury purchases, with monthly net acquisitions falling to a few thousand BTC, significantly lower than the peaks observed in 2025.

Market dynamics suggest that a drop below $80,000 could push these treasuries back underwater, reminiscent of mid-2022 when prices fell below cost basis, leading to notable net sales. Conversely, short-term holders (STH) currently show a more stable picture, with their realized price averaging $74,850, indicating they remain in profit.

Analysts highlight that Bitcoin must hold above $81,500 to avoid testing the $80,000 level. The weekly candle has turned red following the failure to maintain above $84,500, but Bitcoin still holds above its 50-day moving averages, suggesting buyers have not completely lost control.

On the technical front, the daily chart indicates that Bitcoin is testing the 50-day moving average at $81,835, and a failure to hold this level could lead to further declines. The 4-hour chart shows a series of red candles after a failed breakout above $84,000, with the next support cluster forming around the $81,500 swing low.

Should Bitcoin drop below $81,500, the $80,000 treasury cost basis will come into play, followed by the 0.5 Fibonacci level at $77,876. On the upside, reclaiming $84,000 could pave the way for a rally towards the $85,000 to $87,000 resistance zone.