Bitcoin at a Crossroads: $97K Resistance or $70K Crash?
Bitcoin (BTC) experienced significant price volatility following the January US CPI data release. After dipping below $93,000, it rebounded above $97,000, resulting in $76 million in BTC liquidations within 24 hours. Market analysts are keenly observing whether this recovery has enough momentum to push BTC past $97,530.
Bitcoin's Make-or-Break Moment
Analyst Ali Martinez pinpoints $97,530 as critical resistance. He cautions that support below $92,110 is weak, with a considerable gap between $90,000 and $70,000. A break below $92,110 could trigger accelerated downward pressure due to insufficient support at lower levels (see image below).
Rekt Capital shares a similar view, highlighting the $97,700 resistance level (see image below). A daily close above this level, or a successful retest, would confirm a bullish trend. Conversely, failure to break this resistance could signal further price decline.
At press time, BTC trades at $96,753, up 1.06%, with daily volume exceeding $48 billion (up 32%). Coinglass data reveals $76 million in 24-hour liquidations, with over $40 million in long liquidations. The unexpected increase in the US CPI fueled Wednesday’s market turmoil.
Retail Bitcoin Wallets Decline
Santiment reports a decrease in retail Bitcoin wallet activity, possibly due to fear of further price drops. Historically, reduced retail participation has sometimes preceded positive mid-to-long term price movements. Large holders often capitalize on this fear by accumulating Bitcoin at lower prices.
Growing Bitcoin Whale Accumulation
Conversely, Bitcoin whale accumulation is increasing, reaching multi-year highs. The Exchange Whale Ratio has steadily climbed since late 2024, indicating a surge in whale activity. Historically, reduced whale deposits on exchanges often precede Bitcoin price rallies, suggesting a potential shift in market sentiment.
The proposed Bitcoin reserve bills continue to be discussed. VanEck’s Matthew Sigel predicts that if enacted, these bills could inject $23 billion in buying pressure, potentially leading to the purchase of 247,000 BTC.
Disclaimer: This analysis reflects current market conditions and expert opinions. Conduct thorough research before investing in cryptocurrencies. Codeum is not liable for any personal financial losses.