Bitcoin plunges below $100K

Bitcoin saw a sharp decline, dipping below the psychological $100K support in early Monday trading. The price fell around 6% during the Asian session, marking the largest drop in weeks, driven largely by risk-off selling.

This fresh drop has weakened the near-term structure, increasing the risk of further losses, especially if bears manage to hold the break below $100K. However, the price will encounter significant support levels, particularly around the key $90K zone.

Looking at the broader picture, the larger bullish trend appears to be in a consolidation phase, likely preparing for a fresh push higher. Overall sentiment remains positive, with traders awaiting signals from the Trump administration regarding promised reforms and the liberalization of crypto market regulations in the U.S.

From this perspective, today’s drop could be seen as positioning for a potential rally, but the price needs to maintain above the $90K level to preserve the bullish outlook.

It will also be crucial to watch the close for January, as Bitcoin has struggled to close above $100K in previous months. A failure to do so again would signal prolonged sideways movement and increasing downside risk, particularly with the formation of a potential double bull trap above $100K on the monthly chart.

Res: 100000; 101734; 102771; 104734
Sup: 97645; 96886; 93887; 91189