Why did the price of Bitcoin fall today?

Bitcoin’s price is currently down more than two percent, and on Sunday, the coin reached a low of $92,941. BTC’s trend has now reversed and is trading above the $93K level. “After a significant post-Christmas market decline, cryptocurrency markets are seeing an encouraging trend of whales moving stablecoins to exchanges,” Santiment reported.

Historically, the fourth quarter has been a strong period for Bitcoin and altcoins, which is in line with market cycles. We are currently experiencing a slowdown period, which is common after a halving event, such as what happened in 2024. After halvings in previous years (2012, 2016, and 2020), Bitcoin saw significant spikes in the following year.

External factors, such as global liquidity and government actions, will also affect the market. With Janet Yellen’s recent announcement Since the US will reach the debt ceiling in mid-January, more money printing and quantitative easing will likely take place. This creates favorable conditions for assets like Bitcoin.

Looking ahead, January is expected to be a fairly quiet month, with the real events starting in February. Historically, March tends to be a strong month, followed by potential consolidation in April and May due to tax season. After that, the market could rebound again in the summer, continuing into the fourth quarter.

What’s next for Bitcoin?

At the moment, Bitcoin is in a range, and has not completely collapsed yet, but is interacting with support and resistance levels. If Bitcoin remains below the $94,270 resistance level, we could see more downside, with targets around $91,400.

However, if Bitcoin breaks the resistance level at $94,270, it could indicate a change in trend. But for now, the price is still showing signs of weakness, and we are watching any moves below support to confirm further declines.