Bitcoin ($BTC) price has dropped below $80,000 on May 8 after a rejection above $82,850 was accelerated by notable spot selling.
$BTC price fell 1.34% over the past 24 hours, losing around $1,083 to trade at about $79,840 at press time. As such, the flagship coin’s market capitalization declined by $21.5 billion to hover at approximately $1.6 trillion at the time of publication.
Bitcoin price has experienced heightened selling pressure after recently approaching a major liquidity level around $88,880, which coincides with the average price for investors who entered between 3 and 6 months ago, as Finbold explained. With some traders positioning for further downside in hopes of a capitulation-driven bottom, the more important level may sit just below the current price.
Bitcoin price target as short-term traders exit
Amid the recent Bitcoin price drop, the number of $BTC holders declined at the fastest rate in nearly 2 years, according to data from Santiment analyzed by Finbold on Friday. Over the past 5 days, $BTC’s holders declined by 245,000 wallets, the most since the summer of 2024, leaving approximately 58.88 million at the time of reporting.
As such, the next major level for $BTC’s price to watch is $75,000, since it coincides with the point at which short-term holders – those who acquired the flagship coin over the past one to three months – flipped from aggregate loss to profit in early April, as per metrics from CryptoQuant. Furthermore, this zone separates a healthy pullback from a structural breakdown.
Meanwhile, with short-term holders sitting on their highest unrealized profit margins since June 2025, a successful retest and rebound from $75,000 could signal a strong bullish recovery, and vice versa.