Bitcoin Daily Close To ‘Dictate The Next Move’, Is Another Price Drop Ahead?
2025-01-14
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Bitcoin (BTC) started the week in the red, falling to its lowest level in over a month. Amid this performance, some analysts consider BTC’s price will likely see another drop before the flagship crypto aims for new highs.
Bitcoin Needs Daily Close Above $91,000
On Monday, Bitcoin shook off the weekend gains, dropping 5.8% to $90,300, its lowest price since November 18. The flagship crypto ended last week with an overall positive performance, nearing $96,000 and closing Friday above $94,000.
This performance was held throughout the weekend, with Bitcoin moving between the $93,700 and $95,900 price range the past two days. This week started with seven straight red 1-hour candles, dropping below $91,000 for the first time since the December 19 correction and dipping lower than the December 5 pullback.
However, Bitcoin bounced after dropping below this key level, recovering the recently lost mark. Crypto analyst Rekt Capital stated that BTC’s daily close will dictate the next move, suggesting it needs a close above $91,000 to confirm the reclaim.
The analyst explained, “Last week, Bitcoin was deviating beyond the Range High resistance of $101,000. This week, Bitcoin is potentially deviating below the Range Low support of $91,000.” He asserted that BTC closed above the $101,000 range high last Monday but failed to retest it into new support after the breakout, reverting to the $91,000-$101,000 range.
For this week, Rekt Capital added that even if Bitcoin closes the day below the $91,000 range low, it will likely need to turn that level into resistance for its price to drop into the $87,000-$91,000 range.
Nonetheless, he stated that Bitcoin generally needs to close above this key level to persevere in its current range but noted that “a lot can change through the day.”
Is A Dip To $87,000 Coming?
Rekt Capital highlighted that BTC’s monthly returns tend to be “patchy and predominately bearish” in January. As CoinGlass data shows, Bitcoin’s performance has been mostly bearish in January. Since 2013, BTC has started the year in red seven times, including 2025’s current performance.
According to the post, the market usually “picks up” in February. He added that the higher timeframe levels that are “teasing to be lost as support” are “likely to be reclaimed” in the future.
Meanwhile, Altcoin Sherpa considers that “1 last liquidation wick” is due before “we reverse for BTC.” The analyst also suggested that Altcoins are likely to drop another 30%-50% before the Altseason.
Similarly, Daan Crypto Trades pointed out that a “bunch of shorts have entered the market in the past few hours.” The trader noted that “price just keeps slowly dribbling back down” as these positions are usually “punished” when bulls are in control.
Daan explained, “At some point, the shorts will have to close out, but they probably won’t do so before pushing the market down further, combined with the spot selling from Coinbase.” And added that “the slow grinds down end in a violent wick, after which shorts take profit, and we see a (local) bottom.”
Additionally, the trader highlighted the similarities between BTC’s performance between December 2023 and January 2024 and December 2024 and January 2025. If history were to repeat, Bitcoin’s next move could be a correction to the $87,000 support, followed by a consolidation period in the new range.
As of this writing, BTC is trading at $91,700, a 2.9% decline in the daily timeframe.