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Bitcoin (BTC) started the week in the red, falling to the lowest level in more than a month. Amid this performance, some analysts believe that BTC’s price is likely to see another decline before the flagship crypto seeks new highs.
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Bitcoin needs a daily close above $91,000
On Monday, Bitcoin shook off the weekend’s gains and fell 5.8% to $90,300, its lowest price since November 18. The flagship crypto ended last week with an overall positive performance, near $96,000, closing above $94,000 on Friday.
This performance took place throughout the weekend, with Bitcoin moving between the $93,700 and $95,900 price range over the past two days. This week started with seven consecutive 1-hour red candles, falling below $91,000 for the first time since the December 19 correction and falling lower than the December 5 pullback.
However, Bitcoin bounced after falling below this key level, recovering the recently lost level. Crypto analyst Rekt Capital declared that BTC’s daily close will dictate the next move, indicating that a close above $91,000 is needed to confirm the chargeback.
The analyst explained: “Last week, Bitcoin diverged outside the Range High resistance at $101,000. This week, Bitcoin may diverge below the Range Low support at $91,000.” He claimed that BTC closed above the $101,000 high last Monday, but failed to retest for new support after the breakout, returning to the $91,000-$101,000 range.
For this week, Rekt Capital added that even if Bitcoin closes the day below the $91,000 low, it will likely need to convert that level into resistance for the price to drop to the $87,000-$91,000 range.
Nevertheless, he stated that Bitcoin generally needs to close above this key level to stay within its current range, but noted that “a lot could change throughout the day.”
Will there be a dip to $87,000?
Rekt Capital highlighted that BTC monthly returns in January tend to be “patchy and predominantly bearish.” As CoinGlass data shows, Bitcoin’s performance in January was mostly bearish. Since 2013, BTC has started the year in the red seven times, including the current 2025 performance.
According to the post, the market typically picks up in February. He added that the higher timeframes, which “tended to be lost as support,” are “likely to be reclaimed” in the future.
Meanwhile, Altcoin Sherpa considers that “1 final liquidation fuse” must occur before “we reverse it for BTC.” The analyst also suggested that Altcoins are likely to drop another 30%-50% before Alt Season.
This also applies to Daan Crypto Trades pointed out that “a number of shorts have hit the market in recent hours.” The trader noted that “the price is slow to dribble back down” because these positions are usually “punished” when the bulls are in control.
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Daan explained: “At some point the shorts will have to close, but they probably won’t do so until they further depress the market, combined with Coinbase’s spot selling.” And added that “the slow grinds end in a violent fuse, after which shorts make profits, and we see a (local) bottom.”
In addition, the trader marked the similarities between BTC’s performance between December 2023 and January 2024 and between December 2024 and January 2025. If history were to repeat itself, Bitcoin’s next move could be a correction to the $87,000 support, followed by a consolidation period in the new range.
At the time of writing, BTC is trading at $91,700, down 2.9% in the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
