Bitcoin Price Prediction: BTC Plummets Toward $86k, Liquidations Hit $643M As Elon Musk Predicts Death Of Money

The Bitcoin price plummeted 5% in the past 24 hours to trade at $86,251 as of 2:42 a.m. EST on trading volume that soared 71% to $64.3 billion.

The BTC price slump came as the broad crypto market saw its market capitalization plunge 4.9% to $3.02 trillion.

Over 200,000 traders were liquidated, with total liquidations coming in at $642.81 million, according to Coinglass.

Over $205 million was liquidated on BTC trades alone, while $159.77 million was from Ethereum pairs, with over 85% on average coming from longs.

According to the Kobeissi Letter on X, BTC fell over $4,000 in a matter of minutes “without any news at all.”

It attributed the fall to thin liquidity and leverage at record highs, saying that in such circumstances selling pressure leads to a domino-effect.

Elon Musk Predicts Death Of Money

Amid the selloff, Elon Musk said in a podcast that he thinks “money disappears as a concept” eventually.

Musk argued that in a future where anyone can have anything, people no longer need money as a database for labor allocation.

With the death of money in the future, Musk notes that “Energy is the true currency.”

Thus, he set up his support for BTC, saying that Bitcoin is based on energy, as miners get to spend real electricity and computation to secure the system.

Bitcoin Price Under Bearish Pressure

According to the BTC/USD chart analysis on the 3-day timeframe, the BTC price is currently on a bearish trend, which is supported by major technical indicators.

After a sustained surge in April, the Bitcoin price went through a parabolic surge that saw the token jump to $120,000 before going through a consolidation period. The 0.236 Fibonacci Retracement level ($113,343) provided enough support for the bulls to push BTC to an ATH of around $126,000.

However, the bulls were unable to breach this barrier, with the price of BTC dropping dramatically below the 0.786 Fib level ($84,876).

Despite the attempt to push Bitcoin towards the 0.618 Fib level, bears show that they remain in control, as the price is now trading towards the previous support level.

As a result of the drop in the last day, the price of BTC has now dropped below the 200-day Simple Moving Average (SMA) ($88,301), fueling the bearish outlook. The 50-day SMA still sits further up around $110,402, which shows that BTC is still bearish even in the short term.

Meanwhile, the Relative Strength Index (RSI) is trading towards the 30-oversold line, currently at 31, supporting the sentiment that sellers have control.

The Moving Average Convergence Divergence (MACD) on the 3-day chart also supports the bearish trend, as the blue MACD line has dropped below the orange signal line, with red bars below the neutral line indicating that BTC is currently under negative momentum.

BTC/USD Chart Analysis Source: GeckoTerminal

BTC Price Could Find Support Around $74,000

The BTC price is currently bearish, as price indicators also support this trend.

If the bears push the price of BTC to below the 0.786 Fib level at $84,876 and breach the $80,000 zone, the next possible support zone and a cushion against downward pressure could be the $74,000 area.

This could occur if the selling spree continues. Ali Martinez, an influential crypto analyst on X, says that whales have sold over 50,000 BTC, worth approximately $4.6 billion, in the past week.

Conversely, with the oversold and overextended nature of the RSI, buyers may step in to regain control. If this occurs, the Bitcoin price may surge to the resistance area around $100,000 (0.5 Fib level).

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