Key Points
- Bitcoin’s price experienced a significant drop due to bearish expectations in the U.S. equities market.
- The introduction of China’s DeepSeek LLM model has started impacting the U.S. stock market, affecting Bitcoin’s market as well.
Bitcoin’s price has seen a considerable decrease, possibly due to the bearish expectations in the U.S. equities market.
This drop could potentially lead to a deeper correction in Bitcoin’s price, potentially reaching $92k.
Bitcoin’s Recent Performance
In the past 24 hours, Bitcoin [BTC] has lost 5.88% of its value. It reached a high of $109,588 on January 20th, according to Binance trading data, but has been on a downward trend since then.
The recent losses do not necessarily indicate any inherent weakness in Bitcoin.
The U.S. stock market has been affected by the introduction of China’s DeepSeek LLM model. The Nasdaq 100 futures were down 2.9% at the time of writing, and it is predicted that $1 trillion will be wiped from the U.S. equity market at open.
This has caused panic in the crypto and Bitcoin markets, potentially in anticipation of the upcoming FOMC meeting.
Bitcoin’s Price Prediction
In the last two months, Bitcoin has been trading within a range of $92k to $106k. The mid-range level of $99k has been a significant support/resistance level in recent weeks.
The recent selling pressure has brought Bitcoin to the mid-range support level.
Despite the muted trading volume, this could change with the opening of the New York trading session. Traders should therefore remain cautious in the short term.
A fall below the mid-range level could result in a deeper price correction to $92k.
The Bitcoin price prediction is bearish in the short term, as indicated by the MACD on the daily chart. However, the A/D indicator shows higher lows, indicating that the selling pressure is a reaction to the U.S. stock market expectations rather than inherent Bitcoin weakness.
The Coinalyze data indicates strong bearish sentiment in recent hours. The funding rate fell into negative territory during the quick price drop, while Open Interest saw an uptick as prices fell below $102k.
This suggests increased short-selling and bearish sentiment in the derivatives market. Crypto analyst Axel Adler noted that panic selling is not underway, as seen on the short-term holder profit loss to exchanges.
Please note that the information provided does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
