Why Experts Aren't Concerned About Bitcoin's Drop

The Bitcoin market demonstrates its resilience as the price fluctuates around $102,800. On-chain data reveals a remarkable absence of panic selling, reflecting the growing maturity of investors.

Bitcoin correction below $100,000, a controlled phenomenon

Bitcoin experienced a significant drop of 7.13% between January 26 and 27, 2025, falling below $100,000 for the first time since Donald Trump’s inauguration as the 47th President of the United States.

This correction comes in the context of significant liquidations, with over $68 million in long positions closed in 24 hours, according to Glassnode.

Axel Adler Jr., a Bitcoin researcher, highlights a crucial point: losses among short-term holders remain limited to less than 2,000 BTC on exchange platforms. This figure stands in stark contrast to previous corrections of more than 5%, where losses consistently exceeded 5,000 BTC.

In parallel, Joao Wedson, founder of Alphractal, points out that buying pressure returned quickly as soon as Bitcoin fell below $100,000. This confirms that investors remain confident, anticipating a swift recovery towards previous highs.

Short-term perspectives and catalysts

Technical analysts observe a recurring pattern in Bitcoin volatility on Mondays, often establishing weekly extremes before a reversal. This pattern has been confirmed over the past eight weeks, thus offering a potential indicator for upcoming movements.

The FOMC meeting scheduled for January 28 and 29, 2025, represents a major catalyst for the markets. Investors are eagerly awaiting the Federal Reserve’s directions regarding its monetary policy, a determining factor for risky assets like Bitcoin.

Donald Trump’s relative silence on executive orders related to cryptos during his inauguration speech has temporarily weighed on market sentiment but has not triggered widespread panic.

In short, the low magnitude of selling and the maintenance of solid technical indicators suggest that Bitcoin could quickly regain its upward momentum once short-term volatility dissipates. The upcoming sessions will be crucial to confirm this hypothesis.