Bitcoin plunged below the $81,000 level on Tuesday, intensifying selling pressure that pushed the cryptocurrency to test the critical $80,000 psychological support. According to data from Binance’s USDT market, BTC was trading at $80,998.49 at the time of reporting, marking a notable intraday decline.
The move comes as multiple factors converge, including profit-taking after a recent rally above $85,000 and broader macroeconomic uncertainty tied to shifting U.S. interest rate expectations. Trading volume from major exchanges indicated heightened selling activity during Asian and early European sessions, though no single catalyst was identified.
Analysts from Blockbeat highlighted that overheated leverage in Bitcoin markets is showing signs of cooling. Open interest (OI) has decreased by 5.13% over the past 24 hours, signaling that traders are reducing leveraged positions. Additionally, while the seven-day cumulative funding rate remained negative—a sign of persistent bearish sentiment—its margin has been gradually narrowing. “The combined indicators point to a market where overheated leverage is subsiding and bearish hedging sentiment has softened,” Blockbeat noted.
The $80,000 level has historically seen significant order book concentration, acting as both a technical and psychological magnet. A sustained hold above this support could indicate that selling pressure is being absorbed, potentially laying the groundwork for a recovery. Conversely, a decisive break lower could trigger further liquidations and accelerate downside momentum.
Broader market implications were also visible, with Ethereum and other major altcoins edging lower in a risk-off move. Derivatives data showed a slight uptick in put option open interest, suggesting that some traders are hedging against further declines. Despite the bearish cues, the cooling of leverage is often viewed as a healthy correction that reduces the risk of violent liquidation cascades, though full bullish conviction remains elusive.
