What’s Next For Bitcoin After Its Latest Drop Below $100,000?

Samuel Edyme

4 months ago

3 mins read

What’s Next for Bitcoin After Its Latest Drop Below $100K?

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Following a sharp decline and a brief recovery to key levels yesterday, Bitcoin’s rebound now appears short-lived. Earlier today, BTC again fell below the $100,000 mark. Currently, Bitcoin is trading just above $99,000.

This rollercoaster performance from the asset has raised questions about whether it has entered a prolonged consolidation phase or if further declines are ahead.

Support Levels: What’s Next For Bitcoin?

Amid this price movement from BTC, CryptoQuant analyst ShayanBTC provided insight into the driving forces behind the market’s recent downturn and what is next for BTC. According to Shayan, global trade tensions—particularly those involving the US, Canada, and China—acted as a catalyst for the sharp sell-off.

Bitcoin experienced an 11% drop before managing to stabilize around the $90,000 level. Futures markets were hit hard, with $500 million in long positions liquidated, resulting in what is known as a “long squeeze.”

Bitcoin long liquidations on all exchanges. | Source: CryptoQuant

This cascade of liquidations amplified short-term volatility but also revealed a strong support level at $90,000. Shayan mentioned that the $90,000 level has emerged as a key area to watch, suggesting that it could serve as a floor for Bitcoin’s current price correction.

Shayan also pointed out that the recent price action has led to a reduction in speculative positions and a cooling of trading activity. This, in turn, may create an environment conducive to a new wave of demand.

If buyers step in at this critical support, Bitcoin’s consolidation phase could evolve into a foundation for future bullish moves. The analyst particularly wrote:

In essence, while the sweeping market wipeout has injected a sense of caution and cooled down trading activity, it also appears to be clearing the way for new demand to enter the market. If buyers step in at critical support levels, the current consolidation phase may set the stage for a fresh wave of bullish momentum.

Analyst Highlights Bitcoin’s Largest Capitulation

Adding to the discussion, another analyst known as caueconomy highlighted the significance of the latest capitulation wave. The data shared by caueconomy revealed that the realized on-chain losses for BTC reached $1.31 billion, marking the largest capitulation since August 2024.

US trade war causes largest capitulation since August 2024

“Capitulation usually signals the exhaustion of the on-chain selling force, and although we cannot say that bitcoin will not fall in the short term, it is possible that the next drops will be limited.” – By @caueconomy… pic.twitter.com/qXgljYkU5Q

— CryptoQuant.com (@cryptoquant_com) February 4, 2025

Such events often signal that sellers are exhausted, reducing downward pressure and paving the way for price stabilization. While caueconomy acknowledged that short-term declines cannot be ruled out, the analysis emphasized that Bitcoin’s sensitivity to macroeconomic conditions remains a crucial factor. caueconomy noted:

It is worth remembering that the current price is highly sensitive to macroeconomic factors, which can affect this on-chain structure.

Bitcoin (BTC) price chart on TradingView — BTC price is moving sideways on the 2-hour chart. Source: BTC/USDT on TradingView.com

Featured image created with DALL-E, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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