Is Bitcoin Headed for a Drop to $69K? Monitor These Key Price Points as BTC Hits 2-Month Low — Insights from TradingView News

Bitcoin’s valuation is facing a retreat, dropping to two-month minimums as markets open on Wall Street this January 13, with the potent US dollar imposing pressure on the cryptocurrency sphere.

A downward trend in BTC price under $90,000 after maintaining above it for two months

Analytical data from Cointelegraph Markets Pro and TradingView indicate a dip in BTCUSD below the $90,000 threshold for the first instance since the middle of November.

A move that analysts foresaw, the downtrend recorded nearly 5% in one day, triggering the liquidation of over half a billion in long crypto positions, according to data from CoinGlass.

Amid market apprehension and a surging dollar in the prelude to the inauguration of US President-elect Donald Trump, asset classes deemed risky have undergone a sell-off.

Consequently, the S&P 500 and Nasdaq Composite Index saw declines of 0.8% and 1.6%, respectively, upon opening.

In response, several market commentators reiterated their bearish stances on Bitcoin price projections. Material Indicators’ co-founder Keith Alan foresees support levels as low as $69,000, the 2021 peak.

He notably mentioned, “BTC has robust technical backing at about $86k, where the recent range’s lower bound intersects with the 100-Day MA,” referencing the moving average.

Veteran trader Peter Brandt earlier underscored concerns for a bearish reversal pattern in BTCUSD. “Which faction will win, green or red, as we witness the intensifying price battle?” he pondered as the downward motion persisted.

Yet some maintain a more optimistic view, citing low funding rates not seen since the yen carry trade issues last August.

Highlighting striking resemblances between today’s Bitcoin price movements and those from January 2024, trader Daan Crypto Trades playfully inquired, “Are we in a simulation?”

Bitcoin and cryptocurrencies re-evaluated as an inflation buffer

Looking forward, trading company QCP Capital emphasizes the potential for added market fluctuations with incoming US macroeconomic data.

The recent resurgence of inflation concerns has spellbound traders and the Federal Reserve alike, particularly after last month’s nonfarm payrolls data substantiated arguments for “higher for longer” interest rates.

“Is the tide turning back to inflation? Signs of an overheated US economy emerged with last Friday’s NFP figure,” QCP expressed to subscribers.

They further noted that any upcoming macroeconomic shocks “might challenge crypto’s role as a safeguard against inflation.”

Please note, this article does not offer any investment or trading recommendations. Investment and trading decisions come with risks, and it is essential for individuals to conduct thorough research beforehand.