Bitcoin’s price has fallen below a crucial support level of $80,300 after a recent rally, according to analyst Ali Martinez. He stated this level represents the average cost basis for new large investors, and trading below it could incentivize selling pressure. Concurrently, data indicates Bitcoin’s risk appetite, measured by leverage, has hit its highest point in nearly a year, increasing market sensitivity to liquidations.
Bitcoin surged from below $75,000 to almost $83,000 between a recent FOMC meeting and May 6. The asset has since retraced by over $3,000, falling below a key level.
Analyst Ali Martinez identified the $80,300 price as Bitcoin’s most important line, now serving as resistance. “When BTC trades below this average cost basis, these whales are holding at a loss,” he explained in a blog post.
Remaining below this level may incentivize these new whales to sell to break even. Such activity could create selling pressure that pushes the price lower.
Conversely, reclaiming $80,300 as support could signal exhausted selling pressure. Martinez explained that once whales are profitable, they may hold for higher targets, beginning new uptrends.
In a separate post, Martinez warned that Bitcoin’s risk appetite has reached its highest level in almost a year. Data shows the Estimated Leverage Ratio across major exchanges has hit a 2026 peak.
He cautioned that high leverage is a double-edged sword, capable of accelerating breakouts. It also makes the market highly sensitive to cascading liquidations during sudden price turns.
