Bitcoin Price plunged to an intraday low of approximately $58,000 Thursday morning before staging a partial recovery, as a bear market that began after October’s all-time high shows no clear signs of exhaustion — and a closely watched long-term valuation model appears to have broken for the first time in its history.
As of Thursday morning, the world’s biggest cryptocurrency, measured by its market capital, was currently trading at around $59.315, down over 3% from yesterday and about 53% lower than its all-time record high, which reached $126.198 on October 6, 2025.
Bitcoin’s price soared to $61,868 during the morning hours, before buyers overwhelmed sellers and sent the price tumbling down a steep cliff within minutes.
The flash crash on Thursday came after a brutal 24 hours. Bitcoin traded at the lower resistance level of $60,000 on Wednesday. trendline of the Bitcoin Power Law — a long-term valuation model popularized by physicist Giovanni Santostasi that plots price against time on a logarithmic scale and has historically contained all of Bitcoin’s price action for over a decade.
Analysts tracking the model noted that while Bitcoin has flirted with the floor in past market dislocations — most notably during the March 2020 COVID crash and the FTX collapse in November 2022 — a sustained close below the support band had never been registered until this week.
When the breakout occurred, bitcoin’s price trendline was hovering around the $60,000 level. It is a line that moves up by about 0.093% a day as Bitcoin matures. Prices fell further after Thursday’s intraday plunge to $58,000, which widened the gap between the current price and the historical average.
Whether the breach constitutes a structural breakdown of the model — or a temporary excursion that will ultimately resolve higher — is up for debate.
The history of the Power Law Oscillator Prior to significant recovery, there was a period of extreme depression.
Bitcoin Price Drop
This macro background is documented. In recent weeks, spot Bitcoin ETFs saw outflows of billions. The first Bitcoin sale in over four years was made by Strategy, which rattled institutional confidence.
The escalating tensions between the United States and Iran have pushed oil prices up, reigniting inflation concerns. Some Federal Reserve officials are now urging a rate hike. float Rates could be raised rather than reduced.
As investors chase a completely different narrative, they have increased the pressure by moving their capital out of cryptocurrency and into AI related equities.
Bitcoin is now more than half its previous price. all-time high The Power Law Model in uncharted terrain is a test for bulls, with the bears in complete control.
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Source: bitcoinmagazine.com
