Bitcoin might drop to $90,000 in the next few weeks. It’s facing resistance at the $105,750 level, among other factors. Recently, Bitcoin reached a new all-time high above $109,000, but now its price has fallen over 6.5%. This decline is affecting the entire crypto market.
What triggered this drop? It happened right after US President Trump’s inauguration speech. He didn’t mention Bitcoin or any cryptocurrencies. There were no crypto-related executive orders on his first day, which many in the crypto community were hoping for.
As of now, Bitcoin, which peaked at $109,020 on January 20, is trading around $101,948. The BTC/USD pair has dropped more than 6% in the past 24 hours.
The price started to slide right when President Trump spoke on January 21. The crypto community expected him to mention Bitcoin, but he didn’t. He also skipped talking about digital assets, a proposed Bitcoin reserve, or the repeal of the SEC’s controversial “SAB 121” rule. This left many traders disappointed and led them to adopt a more cautious approach.
“People have flipped bearish after screaming how bullish they were yesterday, simply because the 47th president didn’t say ‘crypto’ in his inauguration speeches,” noted crypto investor Jakey on X.
Additionally, the bearish trend in Bitcoin’s price is linked to significant liquidations in the derivatives market. Increased volatility resulted in around $259 million in total Bitcoin liquidations over the last 24 hours, according to CoinGlass data.
On January 20 alone, over $354 million in leveraged Bitcoin positions were liquidated, including $214 million in long positions. A similar situation occurred on December 5 when Bitcoin’s price fell from a high of $103,647 to a local low of $92,092. The recent spike in liquidations indicates that the crypto market was too heavily leveraged on the bullish side, resulting in a sell-off after the inauguration news.
Moreover, Bitcoin’s decline shows a growing bearish divergence between its price and the relative strength index (RSI). The daily chart reveals that while the BTC/USD pair rose between November 12 and January 9, forming higher lows, the daily RSI fell from 84 to 42, creating lower lows.
In technical analysis, this divergence suggests weakness in the current uptrend, prompting some traders to sell at local highs. The chart also highlights a resistance zone between $104,300 and $105,750, which is hindering Bitcoin’s upward movement. Bulls need to break through this resistance to maintain the uptrend.
Professional trader HTL-NL pointed out that the bulls' failure to keep the price above $105,000 has caused Bitcoin to retreat into a range it has been stuck in since mid-November. This trader’s bearish outlook suggests that if the current price action continues, Bitcoin could eventually drop to the lower end of the range at $90,000. “For now, this is and still is the same long-term view. Nothing has changed,” he said.
This article does not provide investment advice or recommendations. All investment and trading decisions carry risks, and readers should conduct their own research before making any decisions.