Bitcoin (BTC) has recently faced significant challenges, with its price trading well below a key support level of $95,000. As the cryptocurrency continues to struggle, concerns are growing about a potential price crash. Bitcoin’s price opened the third week of 2025 on a bearish note, having dropped more than 5% in the previous week, trading around $94,146 early on Monday.
The ongoing decline has led to fears of a possible sell-off, with investors anxious about what lies ahead. A “sell-the-news” scenario, tied to U.S. President Donald Trump’s upcoming inauguration, has added to the uncertainty. Initially, the market reacted positively to Trump’s re-election, but now the market is grappling with the possibility of a deeper correction.
The overall sentiment in the cryptocurrency market is turning more cautious. Traders are becoming wary of further downside risks, and some are preparing for volatility. According to the Bitcoin Fear and Greed Index, a growing sense of fear is emerging, as the optimism that once surrounded the market starts to fade. This shift in sentiment has been accompanied by a slowdown in whale activity, with large holders of Bitcoin appearing to reduce their exposure.
In addition, Santiment data shows that trading volumes have fallen to levels similar to those seen before the U.S. presidential election in November 2024. This drop in volume suggests that market participation is decreasing, which could leave Bitcoin more vulnerable to sharp price movements. The amount of Bitcoin on centralized exchanges (CEXs) has increased by 2,729 BTC, valued at approximately $256 million, signaling that some investors are moving their holdings to exchanges, possibly in preparation for a sell-off. The total supply of Bitcoin on exchanges now stands at around 2.19 million BTC.
From a technical analysis standpoint, Bitcoin’s price is showing several signs of weakness. The cryptocurrency has been forming a head and shoulders (H&S) pattern on the daily chart, a classic bearish indicator. A completed H&S pattern often signals a price reversal, which could lead to significant downward pressure. Moreover, the daily Relative Strength Index (RSI) is showing a bearish divergence, meaning that Bitcoin’s price might soon experience a correction.
Peter Brandt, a respected market analyst, has highlighted the potential for a major price drop, suggesting that the formation of a head and shoulders pattern could push Bitcoin’s price down to between $77,500 and $75,000. Brandt has urged caution, pointing out that this pattern could lead to a sharp decline in Bitcoin’s price if it confirms.
As Bitcoin faces increased bearish pressure, there are several important price levels traders should be monitoring. Immediate support for Bitcoin lies around $90,000, and a break below this level could trigger further sell-offs. However, Brandt has noted that if Bitcoin can hold above $108,000, it could signal a trend reversal and set the stage for a new bullish cycle.
The next few days are critical for Bitcoin’s price action. With increasing uncertainty and bearish technical signals, Bitcoin may be on the verge of a correction, but whether the price will continue to fall or recover depends on how it reacts to key support levels in the near future.
In conclusion, Bitcoin’s price is under pressure, and the formation of a head and shoulders pattern suggests a potential drop to $75,000. Traders and investors will need to stay alert and watch for signs of further weakness or a potential rebound as Bitcoin approaches these crucial levels. The coming weeks could determine the direction of the broader crypto market.
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