Key Points
- Bitcoin’s price drops below $98,000, a nearly 7% decrease in 24 hours.
- The crypto market experiences a significant sell-off, with $838 million in liquidations in the last day.
The global economy is experiencing a significant downturn following the launch of DeepSeek AI in China, which has outperformed ChatGPT. This has resulted in sellers taking control of the market. In the cryptocurrency sphere, the price of Bitcoin has fallen below $98,000, a drop of nearly 7% within the last 24 hours.
As selling increases, the second week of Trump’s presidency sees the cryptocurrency market’s support grounds shaking. Questions are being raised about whether institutional support will decline, fuelling a correction rally as speculation in the derivatives market increases.
Selling Pressure Rises as Crypto Market Loses $838M
The cryptocurrency market continues to experience heavy selling pressure, with liquidations reaching $838 million in the last 24 hours. Long-sighted players have lost $789.19 million. The largest liquidation in the past day took place on the HDX exchange in the BTC-USDT pair, valued at $98.46 million. As a result, bearish speculations in Bitcoin are growing.
The open interest is now at $65.34 billion, with the long-to-short ratio falling below $0.90. The funding rate is currently maintaining balance near 0.0094%, but the number of long-sighted positions has decreased, with the long-to-short ratio standing at 0.8737.
Bitcoin Active Addresses Register Record Low in 2025
As Bitcoin’s value decreases, there has been a decline in the network’s user base. In January 2025, the number of daily active addresses hit a new low. From 1.28 million addresses on January 1, the number of active addresses has now fallen to 1.22 million.
Furthermore, the number of active addresses has dropped to 655.58K from 676.24K. The 7-day change shows a decrease of -21.27% in new addresses, while the active addresses are down by -17.86% in the same period. This decline in the user base in early 2025 is signaling a potential pullback in the coming weeks.
Potential Institutional Support Pullback
While the network and derivatives data paint a bearish picture, institutional support this week may take a strong hit. Last week, the spot Bitcoin ETFs in the US market registered an inflow of $1.76 billion.
With seven consecutive positive days, the first week of Donald Trump’s presidency pushed BTC price above $109,000. However, the second week of Trump’s second administration might see a major pullback.
As the BTC price starts the week on a bearish note, the bearish speculation and the pullback in the global market will likely drop the prices further. Over the past week, the BTC spot ETFs ended the week with $517.67 million worth of inflows on January 24.
Bitcoin Price Analysis Targets $95K Breakdown
With massive bearish engulfing candles in the 4-hour chart, the BTC price is now trading at $98,173. BTC has registered a 24-hour low at $97,750, signaling an intense correction rally.
The current downfall started near the $105,000 mark and has now recorded a drop of nearly 7%. Furthermore, the massive downfall has broken under the 200-EMA line and is putting the $98,000 support level at risk.
Amid the massive pullback, the 4-hour RSI line has dropped to a 25.93% value, reflecting the surge in selling pressure. Furthermore, the 20-EMA is about to cross under the 50-EMA line to give a sell signal.
In the 4-hour chart, the ongoing pullback has dropped under the 50-EMA line at $99,432. In case of an extended correction under the 67.80% level at $97,396, the pullback could break the $95,000 mark.
This will likely test the 78.60% level at $94,474. On the flip side, bullish sustenance above the 67.80% level will likely retest the 100-EMA line near the 38.20% Fibonacci level at $101,477.
