To begin with the week, Bitcoin (BTC) saw a downturn, reaching its lowest point in more than a month. Despite this, certain financial experts predict that the value of BTC may further decrease before it sets its sights on fresh record highs.
Bitcoin Needs Daily Close Above $91,000
On Monday, Bitcoin shed its weekend’s gains, falling by 5.8% to reach $90,300, a price level not seen since November 18. Despite this, Bitcoin had closed the previous week with an optimistic trend, approaching $96,000 and ending Friday above $94,000.
Over the weekend, this event took place continuously. In the last two days, Bitcoin’s price fluctuated within a span of $93,700 to $95,900. The beginning of this week saw a streak of seven consecutive red 1-hour candles, causing it to fall below $91,000 for the first time since the correction on December 19 and even dipping lower than the pullback on December 5.
Despite dipping beneath a crucial threshold, Bitcoin quickly regained its previous level. According to crypto expert Rekt Capital, whether Bitcoin will continue to rise or fall depends on its closing price for the day. Specifically, he believes that if it can close above $91,000, this would confirm the resurgence in value.
The analyst stated, “Last week, Bitcoin surpassed the upper limit of its resistance at $101,000. This week, there’s a possibility that Bitcoin might fall below the lower limit of its support at $91,000. He pointed out that Bitcoin had closed above the $101,000 resistance level last Monday, but it didn’t hold as new support after the breakout, instead moving back to the range between $91,000 and $101,000.
This week, Rekt Capital predicts that if Bitcoin ends the day at a price lower than the minimum of the $91,000 range, it will probably have to change that level from support to resistance for its value to fall within the $87,000 to $91,000 range.
However, he pointed out that for Bitcoin to continue within its present range, it must break above a crucial threshold. Yet, he cautioned that “many things can shift during the day.
Is A Dip To $87,000 Coming?
Rekt Capital emphasized that Bitcoin’s monthly returns are typically “erratic and overwhelmingly negative” during January. According to CoinGlass data, Bitcoin’s performance has predominantly been negative in January. Since 2013, Bitcoin has begun the year with a loss on seven occasions, including its current standing for 2025.
Based on the article, the market tends to show signs of improvement around February. Furthermore, he mentioned that the significant resistance levels which currently appear vulnerable and might be surrendered as support, are expected to be re-established as a supportive level in the upcoming period.
In simpler terms, Altcoin Sherpa believes there’s one more significant price correction (a “1 last liquidation wick”) for Bitcoin (BTC) before it starts increasing again (“we reverse”). The analyst also anticipates that altcoins might decrease by another 30% to 50% prior to the altcoin bull market, often referred to as Altseason.
In essence, Daan Crypto Trades highlighted that there has been a surge of short sellers in the market within the last few hours. The trader added that the price trend appears to be gradually decreasing due to the fact that these positions often face penalties when the bullish trend is dominant.
Daan stated, “At some stage, the short-sellers will need to cover their positions, but they likely won’t do so until they push the market lower first. This could be accompanied by selling from Coinbase. He also noted that ‘prolonged downtrends often culminate in a sharp drop, followed by a period where shorts realize their profits, and we reach (a temporary) bottom.’
Moreover, the trader pointed out that Bitcoin’s price action from December 2023 to January 2024 resembled its movement from December 2024 to January 2025. If this pattern persists, it is possible that Bitcoin will experience a downturn to around $87,000 as support, followed by a period of stabilization within the newly established price range.
As of this writing, BTC is trading at $91,700, a 2.9% decline in the daily timeframe.
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2025-01-14 08:11