Bitcoin (BTC) bounced back to $102,000 at the start of trading on Wall Street on January 27. This recovery came as bulls reacted positively after a scare in the US stock market.
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rose by up to 4.6% from local lows of $97,750 on Bitstamp. Those lows followed a sudden drop in US equity futures. The release of DeepSeek, a Chinese competitor to ChatGPT, raised concerns about US competitiveness in technology.
At the market open, major tech stocks took a hit. However, significant further declines didn’t happen at that moment. Bitcoin aimed to reclaim the six-figure mark. Popular trader Crypto Chase shared his thoughts on X, stating, “That should be the pullback.” His chart hinted at a possible new low around $95,000, suggesting that if this level holds, traders could still feel bullish.
Others downplayed the severity of the situation. They argued that the market was overreacting. Caleb Franzen, founder of Cubic Analytics, offered a broader perspective. In a blog post on January 26, he noted that the S&P 500’s 10-week return of +1.65% is on track for an annualized return of +8.8%. This is close to the average performance of the index since 1950. He also pointed out that Bitcoin had jumped +37% in the same period, encouraging readers to consider the implications.
Data from CoinGlass confirmed that BTC/USD remained up more than 8% in the first quarter. Some expressed frustration over entities selling Bitcoin due to an external shock unrelated to crypto markets. Jan Wüstenfeld from Melanion GreenTech remarked on X, “People selling Bitcoin now need to deepseek within themselves if they have studied Bitcoin enough.”
Looking ahead, trading firm QCP Capital highlighted issues beyond DeepSeek that could affect crypto behavior. In their latest post to Telegram subscribers, they stated, “As for BTC, we do not foresee a break higher without confirmation on a Strategic Bitcoin Reserve.”
They mentioned that the Trump administration’s consideration of a “national digital asset stockpile” didn’t sustain bullish sentiment in the market, at least in the short term. Risk reversals were noted to favor Calls from March onward, indicating that the market doesn’t expect significant changes until the end of the quarter.
QCP also pointed out that the upcoming Federal Reserve interest rate decision is a key event this week. They described the current strength of BTC prices as “relatively resilient,” given the established mid-term trading range.
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