Bitcoin Price Dipped 5% In A Day: Whale Activity Increased; Analysts Say

• Bitcoin price has melted by 5.37% in a day and slipped below its 20-day EMA.
• Its market value has dropped from $2.03T to $1.89T in a day.

The Bitcoin (BTC) price has been on a bullish trend on the wider time frame. However, it has struggled to hold ground above the $100K mark since it first hit that price milestone. Buyers managed to push the Bitcoin price price over the $100K mark on January 6th but failed to continue. Moreover, BTC dived below the 20-day EMA in the latest dip from the 100k mark.

In addition to the price drop, this volatility destroyed Bitcoin longs totaling over $30 Million in a single hour. Rates indicate that competitive examples of rapid liquidation show a high level of vulnerability to leveraged trading strategies in the cryptocurrency market.

With 3,038 BTC ($286M) transferred to Kraken since December 20, 2024 including 778 BTC ($72M) recently, these updates coincide with recent BTC whale activity. This has increased worries about selling pressure and dragged the crypto to the $92,000 mark. Analysts caution that RSI levels increase market uncertainty by suggesting possible declines to $85,000–$90,000.

The Latest Fall in the Crypto Market Explained

Miles Deutscher is a crypto analyst who has highlighted the cause of the recent dip. After the U.S. released data from the Job Openings and Labour Turnover Survey (JOLTS) indicating more job openings than expected, Bitcoin fell 5% and was trading at about $97,000. This report claims that hiring rose from an upwardly revised 7.8 million in October to 8.1 million in November.

Since there is no sign that the Federal Reserve is eager to lower interest rates, the debate over monetary easing has come to an end due to the strong labor number data. At its next meeting on January 29, 2025, the Fed is 95% likely to keep its current rate, according to the CME FedWatch tool.

Every element of the cryptocurrency market was directly and significantly impacted by this economic data. Although Bitcoin had previously reached an intraday high of $102,000, the recent decline has investors concerned about potential gains.

Since the start of the year, the market has performed admirably, with Bitcoin rising more than 11% in the first week of 2025. But almost all of these gains have been cut in half by this most recent correction, and traders are watching for more declines.

The Likely Scenario of BTC Retreating to the $90K Mark

Bitcoin was trading at $95,700 at press time after a 1.27% intraday decline. The market capitalization was $1.89 and the trading volume was $65.77 Billion.

Based on the chart structure, the BTC price has left the $100K mark with string selling and trading below the 20-day EMA. Once the price sustains below the 20-day EMA, sellers might get stronger. The price is expected to melt to the support level of $90K.

On the other hand, if the price bounces back and exceeds the 20-day EMA, buyers might be active. If the price holds above the 20-day EMA, a breakout from the $100 mark can be anticipated.

As prices have slipped below the 20-day EMA and approached significant support levels, analysts caution that further declines could bring Bitcoin down to the $90,000 range.

The pressure from recent labor market data and heightened selling activity from whales has exacerbated investors’ concerns. However, if the price reclaims and hold above the 20-day EMA, there is potential for a rebound and a renewed attempt to breach the $100,000 resistance level.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.