Bitcoin (BTC) is currently holding above the $100,000 support level, but technical indicators coupled with market sentiments suggest there is a likelihood of the asset plunging below this mark over the course of the week.
Bitcoin’s TD Sequential indicator has flashed a sell signal on the hourly chart, hinting at a possible decline toward recent lows around $99,000. A move toward this level could invalidate any push toward the $105,000 resistance, according to an outlook by prominent cryptocurrency analyst Ali Martinez in an X post on January 28.
It’s worth noting that the TD Sequential is used to identify trend exhaustion and potential reversals. For Bitcoin, a breakout of the indicator suggests that the maiden digital currency is facing selling pressure near the $102,700 mark.
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Adding to the cautious outlook, Bitcoin has struggled to break past resistance around $103,400. If selling pressure intensifies, the price could retrace to the $99,000 support zone, where buying interest may re-emerge.
In another projection, a crypto analyst with the pseudonym Carl Moon in an X post on January 29 stated that Bitcoin would likely see more losses, finding support at the $95,000 level.
He explained that the asset had formed a bearish flag pattern, which could lead BTC to retest the descending support with a potential drop toward the $97,000 level if it fully plays out.
After failing to sustain momentum above $100,000, Bitcoin has entered a consolidation phase within a rising channel. However, this structure resembles a bearish flag, often signaling a continuation of the previous downtrend.
Impact of FOMC on Bitcoin price
In both cases, the analysts noted that Bitcoin’s next trajectory will heavily depend on the outcome of the Federal Open Market Committee (FOMC) meeting. According to Martinez, a rebound might follow if the institution presents a ‘dovish’ stance on interest rates.
Historically, Bitcoin has shown sensitivity to FOMC meeting outcomes, and in the current state, it could determine whether bulls or bears take control, given the ongoing consolidation. A dovish Fed stance, signaling rate cuts or easing, could push BTC past $110,000, while a neutral or hawkish approach may keep it range-bound or trigger a pullback.
Regardless of the current price movement, some market players believe Bitcoin is experiencing its last drop before going parabolic. As reported by Finbold, Martinez suggested that historical movements from the 2015 cycle indicate BTC might be gearing up for a rally after the current dip.
Some in the cryptocurrency community are anticipating a decisive price breakout for Bitcoin following the swearing-in of Donald Trump, whose policies are expected to be crypto-friendly.
However, Bitcoin has recently been weighed down by broader financial market sentiments, such as the DeepSeek-triggered stock sell-off.
Bitcoin price analysis
At press time, Bitcoin was trading at $101,986, down over 1% in the last 24 hours, while in the past week, BTC has dropped 2.57%.
Holding above $100,000 is crucial for Bitcoin to avoid further declines. A drop below could trigger more selling, while stability at this level may support a rebound.
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