Bitcoin Fails to Hold Above $100k and Drops to a 2024 Low

According to the BTC/USD chart today, the price of the leading cryptocurrency has fallen below its 30 December 2024 low near the $91,800 level, thereby marking a new low for 2025.

Bearish sentiment may, in part, be driven by the US government’s reported intention to sell Bitcoin confiscated from Silk Road (an online marketplace operating on the anonymous Tor network, where illegal goods were sold for Bitcoin until its closure in 2013). This potential sale could introduce around $6.5 billion worth of Bitcoin into the market.

Meanwhile, CryptoQuant analysts, including Avocado Onchain, remain optimistic. In a publication titled "Bitcoin Price Correction: Short-Term Volatility Amid Long-Term Positive Outlook", they emphasised that short-term fluctuations do not necessarily overshadow Bitcoin’s long-term growth potential.

Technical analysis of the BTC/USD chart paints a concerning picture, as the price is currently hovering near the lower boundary of the upward channel that began forming in early November, driven by a surge in optimism following Trump’s victory (illustrated by a blue arrow). This suggests that bullish momentum may be waning.

Key observations include:
→ Bitcoin has failed to sustain levels above the critical psychological threshold of $100k.
→ The median line of the channel has already acted as resistance (marked by a red arrow).
→ The sharp rebound on 10 January, following a false breakout of the 30 December low, indicates strong demand around that level.

If the bulls are unable to restore BTC/USD’s trajectory within the ascending channel, this could pave the way for the development of a downward trend (potential contours marked in red).