Bitcoin Drops to $77,000 on Binance Hack as Analyst Warns of Final Selloff

Bitcoin (CRYPTO: BTC) plunged below $77,000 overnight after cryptocurrency exchange Binance was hacked for $6.3 billion but has since recovered to trade at around $78,000.

Prominent analyst Benjamin Cowen warns Bitcoin could be entering its final Q4 selloff ahead of the U.S. midterm elections on Nov. 3, with two consecutive weekly closes below its May high suggesting a potential bull trap.

The 200-day moving average near $73,000 could provide a potential support level if Bitcoin breaks below its 21-week EMA.

Again, An FTX-Style Crash?

Cowen outlined two potential Bitcoin bottom scenarios, citing historical midterm-year corrections could end within weeks.

The first involves Bitcoin breaking below $73,000-$77,000 in an FTX-style capitulation when it experienced an approximate 25% plunge in November 2022.

This potentially established a bottom before the elections.

The second scenario sees Bitcoin holding $76,000 and rebounding toward $79,000-$80,000 before another post-election selloff.

Cowen noted that Bitcoin formed major Q4 bottoms after the 2014, 2018 and 2022 midterms.

Although, consecutive weekly declines ahead of this year’s elections could signal an earlier bottom.

Bitcoin’s Final Bottom Signal Is This

Cowen highlighted capitulation volume as a critical indicator for identifying a potential market bottom.

Bitcoin’s previous major bear market lows coincided with sharp increases in trading volume, signaling widespread selling and forced liquidations.

Although, the current correction is yet to produce a comparable volume spike.

Cowen cited the Nasdaq’s roughly 9% decline from recent highs, weakening tech stocks as additional pressure on crypto markets.

Despite near-term weakness, he expects Bitcoin’s eventual bottom to set the stage for a 2027 recovery.

He warned against panic selling, noting that historical Q4 selloffs have often ended quickly.

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