Bitcoin Price Drops 2.5% to $102,323 with Potential Selloff to $91K
Bitcoin price dropped 2.5% in the past 24 hours, trading at approximately $102,323 on January 22. This decline follows a black Marubozu candlestick close and indicates potential short-term weaknesses linked to the cooling leveraged market post-Donald Trump's inauguration.
Key technical indicators include:
- Formation of a potential double top against the US dollar
- Falling divergence in the Relative Strength Index (RSI)
- Possible head and shoulders pattern in the four-hour timeframe
If Bitcoin breaches the support range of $101K to $99.5K, a selloff to $91K is likely. Conversely, a rebound from this support could lead to a rally towards new all-time highs.
Whale Investors Activity
The supply of BTC on centralized exchanges has decreased by nearly 21K in the last week, now at about 2.18 million. Institutional investors, including MicroStrategy Inc, have continued to accumulate BTC, with over 460K coins held as a hedge against inflation. The World Liberty Financial project is also increasing its BTC holdings.
US spot BTC ETFs, particularly BlackRock’s IBIT, saw a net cash inflow of about $248 million on Wednesday, totaling over $122 billion in net assets.
Market Overview
Following Trump's inauguration, traders are monitoring data that may influence the Federal Reserve's rate policy. The Bank of Japan is expected to announce a 25 bps rate hike to 0.5%. Additionally, several nations are discussing strategic Bitcoin reserves, which may significantly affect BTC price action.