Bitcoin recently dropped to $97,777, but buyers quickly stepped in. This raises the question: is a rebound to the previous highs for BTC coming soon?

The price of Bitcoin saw a sharp decline of 7.13% from late January 26 into early January 27. This marked the first time it fell below $100,000 since Donald Trump became president. Since then, Bitcoin has tried to stay above that $100,000 threshold as the market looks for direction.

Market sentiment has been mixed lately. Some analysts think we’ve hit a peak, while others are optimistic about further gains. President Trump’s silence on crypto during his inauguration speech didn’t sit well with many in the Bitcoin community.

Axel Adler Jr., a Bitcoin researcher, pointed out that short-term holders didn’t play a big role in this sell-off. He noted in a post on X that losses for these holders were under 2,000 BTC. In the past, when BTC dropped more than 5%, over 5,000 BTC moved at a loss on exchanges. Adler emphasized that this recent drop didn’t indicate major panic selling.

Supporting this view, Joao Wedson, founder of Alphractal, said buying pressure returned quickly after Bitcoin dipped below $100,000. However, many long positions were affected. Glassnode reported that over $68 million in long positions were liquidated in just 24 hours. They also mentioned that the 24-hour simple moving average of Bitcoin long liquidations reached $2.9 million, marking one of the largest liquidation events in recent months.

One interesting trend with Bitcoin is the volatile price action on Mondays. This often sets the weekly high or low before a reversal happens. Typically, sharp moves occur during low liquidity periods and then reverse when the U.S. market opens. While losses can build up later in the week, Bitcoin has consistently established its weekly high or low on Mondays for the past eight weeks. An anonymous crypto trader, known as CROW, speculated, “Will Monday print the weekly BTC low again? Let’s see.”

With the FOMC meeting scheduled for January 28 to 29, we can expect some market volatility in the coming days.