Bitcoin’s recent drop below $100,000 has caused mixed market reactions. Analysts observe minimal panic selling among short-term holders, with $68 million in long positions liquidated. Attention turns to Monday price movements as potential indicators for the week, especially with the upcoming FOMC meeting, suggesting volatility ahead.
Bitcoin (BTC) experienced a marked decrease, plummeting by 7.13% between January 26 and early January 27, bringing its value below $100,000 for the first time since Donald Trump took office. Following this drop, Bitcoin has hovered just above this threshold, as the market speculates its next move.
Amid fluctuating market sentiments, analysts are split, gauging whether this signals a market peak or is just a pause before a rally. During Trump’s inauguration, his silence on crypto policies upset the Bitcoin community, contributing to the uncertainty. Bitcoin researcher Axel Adler Jr. noted that short-term holders barely participated in recent losses, with exchanges seeing under 2,000 BTC moved at a loss—far less than past downturns.
Joao Wedson, founder of Alphractal, echoed this sentiment, observing quick buying pressure after the price fell. Meanwhile, Glassnode reported significant long positions were affected, with over $68 million liquidated in just 24 hours and liquidations peaking at $2.9 million—one of the largest events in recent months.
Bitcoin’s behavior often sees fluctuations around Mondays, which tend to set the tone for weekly highs or lows. This week, sharp price shifts may precede a reversal as liquidity fluctuates during low trading sessions, particularly once the U.S. market opens. Trader CROW optimistically pointed out the potential for a new weekly low on Monday as the market gears up for the FOMC meeting from January 28 to 29, raising expectations of increased volatility ahead.
In summary, the recent Bitcoin drop below $100,000 has stirred conflicting market sentiments, yet the absence of significant panic selling and quick recovery signals potential for a rebound. Short-term holders appear resilient, with minimal losses reported. Monday price action could be pivotal in establishing market direction, compounded by anticipated volatility linked to upcoming economic meetings.
Original Source: cointelegraph.com
