• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Significant Bitcoin Decline: Causes and Outlook

user avatar

by Giorgi Kostiuk

6 months ago


On January 7, Bitcoin experienced a significant sell-off, forming a bearish engulfing candle on its daily chart. This marked the second-steepest daily decline in the past 19 weeks, signaling heightened market volatility.

Flash Crash Triggered by Economic Data

The sudden plunge from $102,760 to $92,500 was triggered by better-than-expected data from the U.S. Bureau of Labor Statistics, which reported 8.1 million job openings by the end of November, exceeding the expected 7.74 million. This robust data led to declines in equities and the crypto market as investors recalibrated their expectations.

Key Support Levels and Bearish Patterns

The market is closely watching Bitcoin’s ability to maintain key support levels. A daily close below $91,500 could confirm a bearish inverse head-and-shoulders pattern, potentially triggering a deeper crash. Prominent crypto analyst Rekt Capital emphasized the importance of maintaining support above $91,000 to prevent further losses. In a January 8 post on X, Rekt Capital noted that Bitcoin has lost the $101,165 support level after failing its daily retest, pushing it back into its previous range between $91,000 and $101,165.

Trading Sentiment Shift and Bitcoin Outflows

Trading sentiment on Binance has dramatically shifted. On January 6, when Bitcoin rose to $102,000, 56.59% of traders were shorting the cryptocurrency. This bearish positioning coincided with a sharp 10% drop to $93,000. Currently, sentiment has flipped, with 63.92% of traders taking long positions, indicating renewed optimism despite the recent downturn. Furthermore, over 22,000 BTC, valued at approximately $2.10 billion, have been withdrawn from exchanges in the past week. According to analyst Ali on X, these outflows suggest increasing confidence among investors in holding Bitcoin long-term despite short-term volatility.

Despite the recent downturn and changing market sentiments, many investors remain hopeful about Bitcoin's long-term recovery. Current volatility presents opportunities and risks for investors based on their strategy and risk tolerance.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Whale Returns with Massive BTC Short Position

chest

A well-known crypto whale opens a 40x short position on Bitcoin worth $118.8 million, raising market concerns.

user avatarGiorgi Kostiuk

Cryptocurrency: Bitcoin and Ethereum Decline Amidst Surge of MemeCore and AMO Coin

chest

Top cryptocurrencies like Bitcoin and Ethereum show declines while MemeCore and AMO Coin see significant gains.

user avatarGiorgi Kostiuk

Web3 Lost $2.29 Billion in the First Half of 2025 Due to Hacks and Fraud

chest

Web3 reported record losses of $2.29 billion in the first half of 2025 due to security breaches and scams. Analysis of the fallout continues.

user avatarGiorgi Kostiuk

Mutuum Finance: An Ambitious DeFi Project

chest

Mutuum Finance draws investor attention with a successful presale and new initiatives in DeFi.

user avatarGiorgi Kostiuk

Removal of PUMPFUN from Gate.io Raises Questions About Pump.fun's Future

chest

Gate.io has removed pre-market pairs for PUMPFUN, delaying its launch amidst low activity and competitive pressures.

user avatarGiorgi Kostiuk

Bit Digital Shifts Focus: $172 Million to Ethereum after Bitcoin Sale

chest

Bit Digital sells 280 BTC and invests $172 million in Ethereum, increasing its holdings to 100,603 ETH.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.