After an exciting start to the new year, the situation of the most important cryptocurrency has taken a somewhat dramatic turn. A promising climb and breaking the psychological mark of $100,000 earlier this year quickly turned into a drastic decline. Bitcoin is currently hovering below $92,000 and has recorded its lowest level since November 2024 today. This turn of events resulted in the liquidation of positions worth over $700 million, but also caused panic and shattered confidence in the broader crypto market. Altcoins such as Ethereum (ETH), XRP, Cardano (ADA), and Solana (SOL) have also started to glow in the red. While Bitcoin’s decline seems dramatic, some analysts say it is in line with historical trends. So is the current crash just a temporary setback, or is it a sign of more turmoil in the future? Where is Bitcoin headed?
Bitcoin falls below $90,000 amid market turmoil
In the past few hours, Bitcoin’s price has fallen to a two-month low of just under $90,000. At the beginning of the week, the BTC price was in a promising uptrend, and on January 7, it even reached $102,300.
However, within a few days, bears took control of the market, which caused a sharp reversal of this trend. The cryptocurrency fell from $100,000 to $91,250 on Thursday in the past week, with bulls struggling to defend key support levels.
Despite occasional bounces towards $96,000, Bitcoin failed to maintain its bullish momentum and eventually the price fell below the critical level of $90,000, down more than 10% from its recent peak. Investors are anxiously watching the BTC chart and wondering what the future holds.
Altcoins mirrored Bitcoin’s decline. Ethereum price has dipped to $3,100 after a daily correction of 6%. Other major cryptocurrencies, including XRP, ADA, SOL, and SUI, suffered double-digit losses, exacerbating the overall market slump. As CoinGlass data shows, the sudden volatility has led to the liquidation of positions worth more than $768 million.
January corrections: Historical pattern in the years after the halving
While the current decline is a cause for concern, market analysts, including Axel Bitblaze, note that January’s corrections are typical in the years following the Bitcoin halving. Historical data shows that the cryptocurrency often lost value in January after the halving, and soon after it recovered and recorded new records later in the year.
For example, in January 2021, Bitcoin weakened by more than 25%, only to rise by 130% later that year to reach an all-time high of $69,000. Similarly, in January 2017, it fell by 30% before sharply strengthening by 2400% to $20,000.
Investors should view the current decline as part of a repeating cycle and not a sign of a long-term bear market. If the historical pattern is correct, BTC will reach new all-time highs in 2025.
What could push the Bitcoin price up in 2025?
In 2025, the cryptocurrency market is expected to be driven by several key factors. First, growing institutional adoption could bring more liquidity and price stability to the market, especially if Bitcoin and Ethereum spot ETFs attract even more capital.
Large corporations and financial institutions are increasingly adding cryptocurrencies to their portfolios, which increases the credibility of digital assets as serious financial instruments.
Moreover, there is a growing number of states that are introducing policies that promote crypto adoption. This creates a more conducive environment for digital assets. U.S. President-elect Donald Trump is also expected to implement more favorable crypto policies that will encourage more innovation in the Web3 space.
In addition, a growing number of governments are considering the possibility of holding Bitcoin’s strategic reserve as a hedge against inflation. If these initiatives materialize, they could bring more purchasing power to the market and strengthen the coin’s safe-haven status.
Bitcoin predictions according to Peter Brandt
Peter Brandt, an experienced trader, predicts three possible scenarios for BTC. Analyzing the current Bitcoin chart, he noticed a classic head and shoulders pattern. It often signals a potential trend reversal that could take BTC in several directions.
In this scenario, Bitcoin would fall further and potentially reach as high as $76,000. This would mean a value lower by 18% compared to the current price.
The second, more optimistic scenario suggests that the current decline may turn out to be a bear trap. In this case, the price reduction would only become a temporary manipulation.
Its goal would be to get investors to change their bias to bears, followed by a short squeeze and an upward rally. Brandt emphasized that this is the most likely option.
Formation of a larger formation
The third scenario assumes that the current head and shoulders pattern will transform into a larger pattern, with no clear bullish or bearish outcome. This could mean, for example, a prolonged sideways movement before the next major price move.
Brandt also stressed that technical patterns are not infallible and there is no guarantee that they will work as expected. They often change or even fail completely.
The uncertainty surrounding Bitcoin’s current price movement reflects broader market sentiment, as even experienced traders struggle to make a decision.
Today’s drop of Bitcoin below $90,000 has shaken the entire crypto community. However, it is worth looking at this correction in the context of historical trends. January pullbacks are not uncommon in the years after the halving. Usually, they were often followed by bull markets that drove BTC to a new ATH. The question is: panic or seize the opportunity?
Increasing institutional adoption and regulatory clarity can bring greater stability and liquidity to the market. Government reserves in Bitcoin will potentially further increase its credibility and value.
Bitcoin’s upcoming predictions remain uncertain. However, history suggests that the top cryptocurrency is likely to recover from this correction and even reach new highs. Certainly, investors should prepare for volatility, as the next chapter of BTC’s history promises to be exciting.
