Bitcoin has faced strong selling pressure after reaching its all-time high of 109,899.00 on January 20, with prices pulling back to 91,079.00. A mix of technical factors and broader market sentiment contributed to this decline, highlighting shifting momentum in the crypto space.
Despite the short-term weakness, key resistance and support levels remain in focus as traders assess potential breakout or further downside risks. Meanwhile, economic uncertainty and currency movements continue to influence market trends, keeping volatility elevated in both crypto and traditional assets.
Overview
Bitcoin has faced strong selling pressure after reaching its all-time high of 109,899.00 on January 20, with prices pulling back to 91,079.00. A mix of technical factors and broader market sentiment contributed to this decline, highlighting shifting momentum in the crypto space.
Despite the short-term weakness, key resistance and support levels remain in focus as traders assess potential breakout or further downside risks. Meanwhile, economic uncertainty and currency movements continue to influence market trends, keeping volatility elevated in both crypto and traditional assets.
Key Economic Events
Monday 17:00 (GMT+2) - USA: ISM Manufacturing PMI (USD)
Tuesday 15:00 (GMT+2) - USA: JOLTS Job Openings (USD)
Wednesday 15:15 (GMT+2) - USA: ADP Non-Farm Employment Change (USD)
Wednesday 17:00 (GMT+2) - USA: ISM Services PMI (USD)
Thursday 14:00 (GMT+2) - UK: Official Bank Rate (GBP)
Thursday 15:30 (GMT+2) - USA: Unemployment Claims (USD)
Friday 15:30 (GMT+2) - Canada: Employment Change (CAD)
Friday 15:30 (GMT+2) - USA: Non-Farm Employment Change (USD)
Technical Analysis
After reaching an all-time high of 109,899.00 on January 20, Bitcoin (BTCUSD) failed to sustain its upward momentum. A confluence of technical and fundamental factors subsequently pressured prices lower, resulting in a decline to 91,079.00.
The downturn was initiated by the appearance of a Shooting Star candlestick pattern, which, despite marking a record high, signaled a potential trend reversal. This bearish shift was further reinforced by the formation of a failure swing, where the peak at 106,335.50 was unable to surpass its prior high, followed by a breakdown below the key support level of 97,619.30—confirming a shift in market sentiment.
Additionally, BTCUSD slipped below the 50-period Exponential Moving Average (EMA), exacerbating downside risks. Further supporting this bearish bias, momentum indicators remain weak. The Momentum Oscillator and the Relative Strength Index (RSI) continue to trade below their respective neutral levels of 100 and 50, highlighting persistent downward pressure and increasing the probability of further declines.
Potential Upside Targets
Should the buyers take market control, traders may direct their attention toward the four potential resistance levels below:
97619.30: The initial price target is set at 97619.30, which represents the swing low marked January 27.
101492.43: The second price target is estimated at 101492.43, corresponding to the weekly Pivot Point, PP, calculated using the standard methodology.
106335.50 The third target is identified at 106335.50, aligning with the weekly swing high formed on January 30.
109899.00: An additional price target is projected at 109899.00, which mirrors the all-time high reached on January 20.
Potential Downside Targets
Should the sellers maintain market control, traders may consider the four potential support levels listed below:
92204.10: The first level of support is determined at 92204.10, representing the 161.8% Fibonacci Extension drawn from the swing low, 97619.30, to the swing high, 106335.50.
88919.00: The second support level is identified at 88919.00, reflecting the daily low from January 13.
83470.23: The third support is 83470.23, mirroring the 261.8% Fibonacci Extension drawn from the swing low, 97619.30, to the swing high, 106335.50.
72116.11: An additional downward target is observed at 72116.11, corresponding to the 61.8% Fibonacci Retracement drawn from the low point, 48887.16, to the high point, 109899.00.
Fundamentals
Bitcoin took a sharp hit today, plunging over 6% to $91,000 following new import tariffs imposed by Donald Trump. The broader crypto market also tumbled amid trade war fears. However, some analysts see long-term upside, predicting “violent increases” in Bitcoin’s price due to the economic ripple effects.
The tariffs are seen as a move to weaken the U.S. dollar, similar to the 1985 Plaza Accord, ultimately driving inflation and currency devaluation globally. As people seek alternative stores of value, Bitcoin could emerge as a key beneficiary.
For now, though, the U.S. dollar remains strong, creating short-term pressure on Bitcoin. With market volatility high, the coming weeks could be pivotal for crypto and broader financial markets.
Conclusion
Bitcoin’s recent decline highlights ongoing volatility, with technical signals pointing to potential further downside. However, key resistance and support levels remain critical as traders watch for shifts in momentum. Broader economic uncertainty, currency movements, and trade policies continue to shape market sentiment. In the near term, Bitcoin faces pressure, but longer-term prospects could shift depending on macroeconomic developments and investor response to global financial trends.