Bitcoin (BTC) has faced significant challenges recently, with the price falling well below a key support level of $95,000. As the cryptocurrency continues to struggle, concerns are growing over a possible price crash. The price of Bitcoin began the third week of 2025 on a bearish note, having fallen more than 5% in the previous week, and was trading around $94,146 as of early Monday.
The continued decline has led to fears of a sell-off, with investors anxious about the future. A “sell on the news” scenario, linked to the upcoming inauguration of US President Donald Trump, added to the uncertainty. Initially, the market reacted positively to Trump’s re-election, but now the market is struggling with the possibility of a deeper correction.
Growing Fears of a Massive Sale
The general sentiment in the cryptocurrency market is becoming more cautious. Traders are becoming wary of new downside risks, and some are bracing for volatility. According to the Bitcoin Fear and Greed Index, a growing sense of fear is emerging, as the optimism that once surrounded the market begins to fade. This change in sentiment is accompanied by a slowdown in whale activity, with large Bitcoin holders appearing to reduce their exposure.
Additionally, Santiment data shows that trading volumes have fallen to levels similar to those seen ahead of the November 2024 U.S. presidential election. This drop in volume suggests that market participation is declining, which could make Bitcoin more vulnerable to sudden price movements. The amount of Bitcoin on centralized exchanges (CEX) increased by 2,729 BTC, worth approximately $256 million, signaling that some investors are moving their holdings to exchanges, likely in preparation for a massive sale. The total supply of Bitcoin on exchanges is now around 2.19 million BTC.
Technical Indicators Suggest Potential Downside
From a technical perspective, the Bitcoin price is showing several signs of weakness. The cryptocurrency forms a head and shoulders (H&S) pattern on the daily chart, a classic bearish indicator. A completed H&S pattern often signals a trend reversal, which could result in significant downward pressure. Additionally, the daily Relative Strength Index (RSI) shows a bearish divergence, which means that Bitcoin price may undergo a correction soon.
Peter Brandt, a respected market analyst, highlighted the possibility of a significant price drop, suggesting that the formation of the head and shoulders pattern could push the Bitcoin price between $77,500 and $75,000. Brandt urged caution, noting that this pattern could lead to a sharp fall in the price of Bitcoin if it is confirmed.
Key Price Levels to Watch
As Bitcoin faces increasing bearish pressure, there are several important price levels that traders should watch. Immediate support for Bitcoin lies around $90,000, and a break below this level could trigger further sell-offs. However, Brandt noted that if Bitcoin can sustain a price above $108,000, it could signal a trend reversal and set the stage for a new bull cycle.
The next few days are crucial for Bitcoin price action. With growing uncertainty and bearish technical signals, Bitcoin could be on the verge of a correction, but whether the price will continue to fall or recover will depend on how it reacts to key support levels in the near future .
In conclusion, Bitcoin price is under pressure, and the formation of a head and shoulders pattern suggests a potential fall to $75,000. Traders and investors will need to remain vigilant and watch for signs of weakness or potential rebound as Bitcoin approaches these crucial levels. The coming weeks could determine the direction of the broader crypto market.
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