Key Takeaways
- Bitcoin’s daily volume and active addresses decline as bears reject the price around $107,000, forcing more sell orders.
- Bitcoin’s price trades above its 50-day and 200-day EMA, which suggests that it remains bullish and is likely to trend higher around $90,000.
- Based on market sentiment on lower timeframes, bears dominate the BTC price as the price could trade into lower regions of $100,000.
Bitcoin (BTC) and the crypto market continue to face harsh trading conditions, with little to no positive news driving the market to the upside. The price of Bitcoin (BTC) faced steep price resistance around $107,000, and it attempted to break to the upside but kept getting rejected by Bitcoin bears.
Over the past few days, Bitcoin (BTC) volume has seen an increasing decline across the market, with on-chain data from Santiment pointing to this. While this has been the case, there have also been declines in Bitcoin spot ETF, with inflow decline since January 2025.
On-chain volume declines leading to price falls have not been peculiar to BTC alone. Other crypto assets such as Ethereum (ETH), Solana (SOL), and others have all faced their share of market decline in the past few weeks as traders and investors remain cautious ahead of February 2025.
Source – Market Reaction To Bitcoin Crash From Coin360
The current market trend for Bitcoin (BTC) is bearish on the lower timeframe following price rejection from key resistance around $107,000. The price trades close to $102,000, with a high chance of going lower to $95,000. On-chain data from Coin360 shows the general market reaction as Bitcoin dropped by over 2% in the last 25 hours, with altcoins suffering a market decline.
Will the price of Bitcoin and altcoins bounce over its strong resistance of $109,000 and rally to a new all-time high in February 2025 or in the next few weeks?
BTC Technical Analysis – Why Is Bitcoin Price Dropping
Source – BTC 1D Price Chart From TradingView
The price of BTC saw an aggressive price decline around its resistance of $107,000, indicating Bitcoin bears wanted to push the price lower as the price fell towards $102,000, with the price looking increasingly bearish on lower timeframes and could continue to trend lower towards its region of $95,000 where more buy orders are placed.
While the price of Bitcoin continues to struggle on lower timeframes, it remains bullish on higher timeframes as the price of Bitcoin trades above its 50-day and 200-day EMAs (Exponential Moving Averages) as the price could attempt to bounce off its support of $95,000 or $90,000 corresponding to the 50-day EMA.
If the price of Bitcoin fails to hold off sell orders around $90,000, allowing bears to dominate, we could see the price drop to a low of $85,000, forcing more sell orders to be triggered. BTC bulls need to mount a defense around $90,000 to avoid the price trending lower.
