As of January 13, 2025, Bitcoin has fallen to $91,800, marking a decline of nearly 4% over the past week. This drop comes after a brief surge above $95,000 earlier in January, highlighting the cryptocurrency's ongoing volatility. The recent downturn has been attributed to several factors, including indications of overheating in cryptocurrency exchanges, as reported by CryptoQuant [16b39d38].
Earlier this week, Bitcoin traded at $92,353, but it has since dipped further, with analysts noting that the failure to maintain levels above $100,000 on January 7 has led to bearish sentiment. The current support level is identified at $92,493, while the Relative Strength Index (RSI) stands at 41, indicating bearish momentum. Additionally, the Moving Average Convergence Divergence (MACD) has shown a bearish crossover, suggesting potential for further declines, particularly if Bitcoin falls below the critical $90,000 mark [16b39d38].
The broader economic context has also played a significant role in Bitcoin's price movements. The U.S. non-farm payrolls report revealed an addition of 256,000 jobs in December, exceeding expectations of 160,000. This robust employment data has led to decreased expectations for Federal Reserve interest rate cuts, which has further impacted Bitcoin's market performance [3e0ef396].
Despite the challenges, there are signs of mild recovery in institutional demand, with Bitcoin spot ETFs seeing a net inflow of $312.8 million. However, concerns about potential inflation due to Trump-era tariffs loom large, adding to the uncertainty in the market [16b39d38].
The cryptocurrency market remains under pressure, with liquidations exceeding $1 billion this week, primarily from long positions. Influential figures in the market, including Elon Musk, have issued warnings about Bitcoin's price, contributing to the overall cautious sentiment among investors [fb1b9953].
In terms of altcoins, while Bitcoin and Ethereum have faced significant declines, some altcoins like Helium (HNT) and Starknet (STRK) have shown resilience, with notable price increases in recent days [f1a97b0c].
Looking ahead, analysts are closely monitoring Bitcoin's performance, particularly as it approaches the $90,000 threshold. A potential correction to $85,000 could attract long-term investors, but significant selling pressure remains a concern as the market navigates through these volatile conditions [3e02f9a6][6f2d736c].