Could Bitcoin Turn into a Nightmare on January 20th? What to Expect?
Bitcoin $94,276.6 continues to remain under strong selling pressure, rejecting $100,000 during Christmas. While investors try to maintain the critical support at $95,000, some analysts predict that BTC could drop as low as $60,000 before Donald Trump's inauguration on January 19th.
Bitcoin continues to face selling pressure
After rising to $100,000, Bitcoin's decline increased selling pressure. The price is trying to stay around $95,000. However, on-chain data shows that Bitcoin's ability to continue the rally is limited. Analysts warn that if BTC fails to hold the support zone between $97,041 and $93,806, it could experience further value loss.
Popular crypto analyst Ali Martinez says that if these support levels are broken, the price could drop to $70,085. On-chain data also shows that an increase in BTC exchange reserves is causing investors to prepare for a potential drop. Over the past week, more than 33,000 Bitcoins have been transferred to exchanges. This could herald a possible decline.
Warnings about Bitcoin's Decline Scenarios are Increasing
The increasing Bitcoin reserves in the exchanges signal potential profit realizations. On December 23, Bitcoin investors made a profit of $7.17 billion. In addition, the decrease in Bitcoin long positions indicates that investors are considering the market risks more.
Analyst Peter Brandt stated that Bitcoin could experience a breakout from the triangle pattern and retrace to the $70,000 levels. This decline could deepen further ahead of Trump's inauguration ceremony.
Optimism Continues in Altcoins
Despite the possible decline in Bitcoin, there has been no decrease in interest in altcoins. Investors continue to believe that altcoins can recover. Market analysts point out that the altcoin season is not over and that these assets have the potential to rebound strongly. Despite the pressure on Bitcoin, optimism for altcoins continues.
Not investment advice