Bitcoin price falls 6% offsetting early January gains after hitting $102,800 peak
Bitcoin retreats 6% to $96K after rally to $102K, pressured by Fed tightening fears
Bitcoin price began the year with six consecutive days of gains, climbing 10% to peak at $102,800 on January 6. This marked a decisive break above the much-watched $100,000 resistance level, fuelling optimism among investors.
However, the rally abruptly reversed on January 7, when Bitcoin fell over 6% to a four-day low of $96,100, its largest single-day decline since mid-December 2024. The sharp pullback brought the price back below $100,000, undermining the bullish momentum.
BTC price dynamics (November 2024-January 2025). Source: TradingView
The sell-off coincided with a wave of strong U.S. economic data that sparked fears of prolonged Federal Reserve tightening. Reports of higher-than-expected job openings for November and surging services sector activity in December pushed 10-year Treasury yields to 4.699%, their highest level since late April. This rattled broader markets, leading to sharp losses in equities such as Nvidia and Tesla, and triggered a broader correction in cryptocurrencies. Bitcoin’s drop below $100,000 mirrored this shift in sentiment, while altcoins faced even steeper declines.
Bitcoin price prediction: Risk of slide to $92K after break below 200 EMA
On the four-hour chart, Bitcoin’s decline was cushioned by the 200 EMA and the RSI dipped below 50 and continues to decline, suggesting mounting bearish pressure, though it has yet to enter oversold territory. This led to a break below the 200 EMA which could see Bitcoin slide further to $92,000, a pivotal support level that has successfully prevented deeper declines since November 2024.
In the early European session on January 8, Bitcoin is now below the 200 EMA at 95,500. The EMA is acting as immediate resistance and will be critical in determining its next move. A failure to remain above the 200 EMA opens the door to further losses, while a sustained rebound above $100,000 would reignite hopes for continued upside.
U.S.-listed Bitcoin ETFs saw a record $987 million in inflows on January 6, driven by institutional interest. As such, Bitcoin mounted a steady climb breaching the $100,000 mark.
