Bitcoin Losing Fight with $90K Resistance Level
Bitcoin is falling again after trying to pass the$90K level and could stay down for a while, according to some metrics.
Quick overview
- Bitcoin (BTC) has fallen below $90K, currently trading at $87,926, with predictions of a potential drop to $62,000.
- The recent decline is attributed to a hawkish Federal Reserve stance and significant selling pressure as Bitcoin struggles to maintain its value.
- Analysts express concern over Bitcoin's short-term performance, while maintaining a more optimistic long-term outlook with predictions of $150K and higher.
- Investor interest in cryptocurrency is waning, influenced by rising tensions in Iran and increasing values of gold and silver.
Bad news for Bitcoin (BTC) holders for Thursday as the coin dipped below $90K to $87,926 (BTC/USD), and one analyst says that BTC rate could hit the reserve cost level near $62,000.
Bitcoin lost ground this week and fell 1.79% over the last seven days and 2.44% in the last 24 hours. The losses can be attributed to a hawkish Federal Reserve, which said there would be no interest rate cut for now, as well as the tremendous selling pressure caused by Bitcoins struggle to hit $90K.
BTC/USDNow, Bitcoin is in a bearish cycle that may be tough to break out of. Since the coin was not able to hold the line above $90K, investors are likely to dump it quickly. It may lose whale support as well and could have an even harder time surpassing that same resistance level over the coming weeks.
What Is the Bottom for Bitcoin?
The BTC price could fall as low as $62,000, according to crypto analyst Burak Kesmeci. His prediction is that Bitcoin may hit that level it last saw in 2024 because the coin is behaving similarly to how it did before spot ETFs come on the scene and elevated the BTC price level.
The extended play below $100K is definitely hurting Bitcoin’s prospects, and few analysts are very hopeful about its short-term potential. The long-term outlook is better, with price predictions set for $150K and higher in the next few years, but short-term investors are left with a coin that simply is not performing well and has not been for months.
The cryptocurrency market is seeing widespread investor abandonment for late January. The year started off well with crypto tokens surging, but that momentum is gone, and both Bitcoin and the wider crypto market are in a bearish phase. The Federal Reserve is not helping the situation with its stand on issuing no rate cuts for now.
Interest in crypto has been waning at the tail end of January as political tensions increase in Iran and gold and silver values climb. Investors should watch out for cyclical change that could see the market surge in early February. The best case scenario is that the current bear trend is short lived and ends up not keeping Bitcoin down for very long as whales pick up the pace and economic reports start to show signs of growth.
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