How Low Can Bitcoin Price Drop After the Flash Crash?

Bitcoin is facing fresh correction risk after a sharp sell-off pushed BTC from above $79,000 toward $77,000. The move triggered roughly $547 million in crypto liquidations before buyers stepped back in. BTC was trading around $77,291, down 0.43%, at the time of writing.

The pullback came after Bitcoin reached about $79,500, its highest level in months. The rejection has raised concerns that the recent rally could face another correction, particularly as leverage remains elevated.

Bitcoin Faces Fresh $77K Support Test

Bitcoin’s move above $79,000 was short-lived as sellers quickly pushed the price lower. The decline toward $77,000 triggered a wave of liquidations across leveraged positions.

The recovery, however, shows that demand has not disappeared. U.S. spot Bitcoin ETFs recorded $307.45 million in net inflows on Aug. 21, extending their inflow streak to five consecutive days.

The continued ETF demand provides support for BTC, but the failed breakout above $79,000 leaves the market vulnerable to another pullback

How Low Can BTC Price Go?

Analyst P4 Provider has identified $79,000 as an important resistance level after Bitcoin swept liquidity above that area. The analyst also pointed to bearish RSI divergence, rising USDT dominance and elevated funding rates as signs of increasing correction risk.