Bitcoin (BTC) started the week with a notable drop, reaching its lowest level in over a month. This sudden decline has left many analysts questioning whether the flagship cryptocurrency will face another price dip before attempting to reach new highs.
On Monday, Bitcoin experienced a sharp 5.8% drop, falling to $90,300. This marked its lowest price since November 18. After a positive week, where Bitcoin closed above $94,000, it seemed to struggle to maintain momentum. The price hovered between $93,700 and $95,900 over the weekend but started the week with a significant pullback.
Bitcoin’s price dropped below the crucial $91,000 mark, which hadn’t been seen since the December 19 correction. This dip raised concerns among traders and analysts, as it signaled potential weakness in the market. However, Bitcoin quickly bounced back above this key level, drive discussions about its next move.
Crypto analyst Rekt Capital emphasized the importance of Bitcoin’s daily close in determining its next direction. According to Rekt, Bitcoin must close above $91,000 to confirm that it has reclaimed this critical support level. He pointed out that last week, Bitcoin briefly moved above the $101,000 resistance but failed to hold that level, resulting in a retreat back to the $91,000-$101,000 range.
Rekt Capital further explained that if Bitcoin fails to close above $91,000 today, it may face further downside, potentially dipping into the $87,000-$91,000 range. However, the analyst noted that a lot can change during the day, and Bitcoin could still turn things around with a strong daily close.
Rekt Capital also mentioned that Bitcoin’s performance in January has historically been weak, with the market often starting the year in a bearish trend. Since 2013, Bitcoin has begun January with losses in seven out of the last 12 years. As of now, Bitcoin is following a similar pattern in 2025, but Rekt believes the market may start to recover in February.
The analyst noted that even if Bitcoin’s price drops further, the higher timeframe levels that are currently being tested as support will likely be reclaimed in the future, leading to a potential recovery.
Other analysts, like Altcoin Sherpa, believe that Bitcoin may experience one final dip before reversing its trend. Sherpa suggested that altcoins could face a significant decline of 30%-50% before the so-called “Altseason” begins. Similarly, Daan Crypto Trades highlighted the increasing number of short positions in the market, which could push Bitcoin’s price lower before eventually triggering a sharp rebound.
Daan also pointed out the similarities between Bitcoin’s performance in December 2023 and January 2024 and the current price action. If history repeats itself, Bitcoin may see a correction down to the $87,000 level, followed by a consolidation phase in the new range before attempting to push higher.
Bitcoin’s current price action is highly uncertain, and many factors are influencing its next move. While Bitcoin faces some challenges in the short term, the daily close above $91,000 will be crucial in determining whether it can maintain its support level or if a further drop is on the horizon. Analysts remain divided on the future, but all agree that Bitcoin’s performance in the coming weeks will be pivotal in shaping its trajectory for 2025.
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