Bitcoin (BTC) started the week poorly, hitting its lowest point in over a month. Many analysts think it might drop further before climbing again.
A Rocky Start to the Week
Bitcoin fell 5.8% on Monday, reaching $90,300 – its lowest since November 18th. This was a big drop after a positive end to last week, where it closed above $94,000. The price had been hovering around $94,000 over the weekend. Monday saw a series of price drops, pushing it below $91,000 for the first time since a correction in December. However, it did recover somewhat after that initial fall.
Daily Close is Key
Analyst Rekt Capital says Bitcoin’s daily closing price is crucial. He believes a close above $91,000 is needed to confirm a recovery. He points out that Bitcoin briefly broke above $101,000 last week but couldn’t hold that level as support, returning to the $91,000-$101,000 range. Even if it closes below $91,000 this week, it would likely need to turn that level into resistance before a further drop to the $87,000-$91,000 range. He emphasizes that the situation is dynamic and could change rapidly.
January’s Bearish History and Future Predictions
Rekt Capital notes that Bitcoin’s performance in January is historically weak. Since 2013, it’s started the year in the red seven times, including this year. He suggests things usually improve in February. He also believes that support levels currently under pressure will likely be regained later.
Other analysts share a similar outlook. Altcoin Sherpa expects one more significant price drop before a reversal. He also predicts a 30-50% drop for altcoins before a bull run. Daan Crypto Trades points to a large number of short positions in the market, suggesting that a further price drop is likely before a rebound. He highlights the similarities between Bitcoin’s performance in December 2023/January 2024 and December 2024/January 2025, suggesting a potential drop to $87,000 followed by consolidation.
Current Situation
At the time of writing, Bitcoin is trading around $91,700, down about 3% for the day. The overall picture suggests a potential further drop is on the cards, but the market remains volatile.
