Bitcoin tests $80K support as deeper correction questions build

What happened

CryptoPotato's Oct. 27 analysis said Bitcoin was trading above $80K after another rejection from the $87K supply zone, a move that left the middle of a broad ascending channel under pressure. The channel has framed Bitcoin's recovery since the June lows, but repeated failures around the upper boundary, within a $85.5K, $90K supply area, have weakened momentum and pulled price back toward the midline around $80K. Buyers were trying to defend that level, though rebounds remained limited and the market had printed a series of lower highs since late September.

The shorter-term picture was weaker. On the 4-hour chart, Bitcoin had formed lower highs after failing to clear $87K, and the latest rebound stalled and reversed from the $85K area. Price then lost the lower boundary of a short-term ascending channel that had supported the move since mid-September and was trading around $80K after retesting the broken trendline from below. A failure to reclaim $81K would suggest the former support had become resistance, while a clean break below the recent low near $79K would expose the broader $75K demand zone, CryptoPotato said.

A later report from The Crypto Basic described a more severe test. Bitcoin closed Thursday at $77,800, down 4.29%, after reaching $81,882 earlier in the session. The decline to $77,688.10 marked the lowest traded price in the latest 30 completed daily candles and put the close below Saturday's $79,120.80 floor. The report said the broader sell-off followed news of a suspected Binance hack, and Reuters reported that Bitcoin fell to a six-week low as the exchange investigated the breach.

Binance estimated the incident's impact at approximately $6.3 billion and said around $3 billion had been frozen on-chain. The exchange temporarily suspended deposits and withdrawals and pledged to cover all losses using its SAFU fund and company funds, according to The Crypto Basic.

Why it matters

The $80K area is the midline of the ascending channel in CryptoPotato's framework and the level separating the recovery structure from a deeper correction. A decisive daily close below it would shift attention to the $75K, $78K demand zone, the order block that preceded the sharp August rally. If that area also fails, the lower channel boundary near $73K would be the final major support within the pattern. On the upside, a recovery toward $85K would be the first sign of improving strength, while reclaiming $81K on the 4-hour chart could open the $84K supply area and then the $87K resistance that capped recent rallies.

What the data shows

In The Crypto Basic's Oct. 30 report, Bitcoin settled at $77,800 after trading as high as $81,882 and as low as $77,688.10. The daily MACD line stood at −678.76 against a signal line of −298.73, with the histogram widening below zero to −380.03 from −224.19, an expansion of an existing bearish gap rather than a new crossover. The final completed four-hour candle closed at $77,800 near its low, with MACD also below its signal. The latest price quoted in the report was $77,998, a modest recovery from the settlement. CryptoPotato's levels included $87K supply, $85K as a first recovery signal, $81K as a 4-hour reclaim test, $79K as the recent low, $75K, $78K demand and $73K as the lower channel boundary.

Background

Bitcoin's advance had been contained within a broad ascending channel since the June lows, with the $85.5K, $90K zone acting as a supply area. CryptoPotato also cited CryptoQuant's Miner Reserve indicator, which tracks the total BTC held in miner wallets. The chart's 30-day EMA declined from approximately 2 million BTC in early 2025 to around 1.1925 million BTC, a steady downtrend that persisted even as Bitcoin climbed toward the $120K region. That suggested miners continued to sell into strength. More recently, the reserve fell sharply from mid-2026 before stabilizing around its current level, with only a modest rebound. CryptoPotato noted that the decline does not independently confirm a bearish trend, since miners also sell to cover operational costs, but the absence of a clear reserve recovery added to the cautious outlook while BTC defended $80K.

What to watch

Attention now centers on whether Bitcoin can repair the damage. The Crypto Basic said a daily close below $77,688.10 would extend the breakdown, while the September 15 low at $74,891.50 is a farther historical reference rather than an immediate forecast. To repair the structure, Bitcoin first needs to reclaim $79,120.80, followed by Wednesday's $80,281.80 low; a close above Thursday's $81,882 high would invalidate the latest bearish reversal. CryptoPotato's framework points to a move toward $85K as the first sign of improving strength, with a decisive daily close below the $80K midline keeping the $75K, $78K demand zone in view.

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