As long as the price of $BTC remains above $97,777, the chances of a recovery remain. This level is a key support, supported by the long lower wick of the January 27 candle. However, if sellers manage to break it, the market could drop to $89,256, the low of January 13.
Another important level to watch is $95,400, a trend line drawn from the low of $58,946. Here there is a high probability that the decline will stop and a sharp rebound will occur. If this happens, the market could start forming a “squeeze” pattern towards the resistance of $109,000, which would be a strong bullish continuation signal.
Despite the current drop, demand for Bitcoin remains high. Buyers include politicians, central banks that are starting to build up crypto reserves, as well as large companies and institutional investors. Each halving makes BTC a scarcer asset, pushing it further and further away from zero. History shows that when there is panic in the market, smart money takes advantage to accumulate. The key is not to get carried away by the crowd. $XRP
