Bitcoin Price Forecast: BTC Dips to $78K as Gold and Silver Plummet – Has the Sell-Off Concluded?

Bitcoin is currently trading near $78,000, undergoing a significant correction that coincides with substantial selling in gold and silver. This timing is noteworthy as all three assets are experiencing declines simultaneously in a clear risk-off environment, driven by a stronger US dollar, the unwinding of leveraged positions, and shifting expectations regarding US monetary policy.

The decline in Bitcoin follows a tumultuous January. Gold and silver are also experiencing downturns after historic rallies that intensified at the year’s end. This aligned drop suggests a widespread de-risking trend rather than mere weakness in a single asset.

Bitcoin News: Liquidations and Policy Changes Pressuring BTC

Bitcoin has fallen approximately 6 to 7% in the past 24 hours, briefly dipping into the $76,000 to $77,000 range during a quiet weekend trading session. Over $1 billion in leveraged positions have been liquidated throughout the crypto markets, accelerating the downturn.

Several elements are negatively impacting market sentiment:

• Lowered expectations for an extremely loose US policy following President Trump’s nomination of Kevin Warsh as the head of the Fed
• A stronger US dollar exerting pressure on risk assets
• Persisting geopolitical uncertainties, including developments between the US and Iran
• Ongoing ETF outflows and institutional de-risking

Bitcoin’s status as “digital gold” is under scrutiny as it declines alongside traditional safe havens, rather than behaving differently from them.

Bitcoin Technical Analysis: Can BTC Maintain $78K Support?

From a technical standpoint, Bitcoin’s price outlook is decidedly bearish as BTC finds itself at a crucial juncture. The daily chart indicates BTC has fallen below a long-term downward trendline, signifying that sellers maintain control. The recent effort to rebound toward $98,000 was effectively halted beneath the 100-day and 200-day EMAs, initiating a new downward trajectory.

The price has now returned to the $80,400 to $78,300 range, which previously served as a double-bottom base. Revisiting this area raises the risk that this pattern may fail rather than lead to an upward movement.

Bitcoin Price Chart – Source: Tradingview

Momentum remains weak. The RSI has fallen below 30, indicating an oversold market, yet there are no signs of a bullish reversal. In trending markets, this typically suggests the continuation of the trend rather than a reversal.

Two primary scenarios could unfold:

• A relief bounce towards $84,000–$86,000, where broken support and the descending trendline now function as resistance
• Inability to reclaim that zone, leading to a downside target of $75,800, and potentially $71,600 if selling intensifies

For a favorable recovery, Bitcoin must remain above $78,000, subsequently form a higher low, and surpass $86,000. This could pave the way to $94,000 in the future.

Gold and Silver: Record Rallies Encounter Sharp Reversals

Gold and silver have also experienced significant declines following substantial gains. Gold exceeded $5,500 per ounce but has now retreated to the $4,800 to $4,900 range due to profit-taking and a stronger dollar. Silver, which climbed past $120, has seen a more pronounced drop, falling to the $80 to $85 range as traders liquidated speculative positions.

Although both metals remain well above their early-2025 levels, the rapidity of the reversal underscores how crowded the trade had become.

Outlook: Volatility Now, Opportunity Later

At this moment, Bitcoin is restructuring, eliminating leverage and assessing long-term demand. If it can hold above $78,000, a broader recovery may commence. Conversely, lower prices could materialize before confidence is restored.

In such volatile markets, patience often proves more valuable than attempting to predict the next movements.

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