Bitcoin price fluctuates sharply: $89,300 is the bottom or not?

On January 14, 2025, the crypto market witnessed massive volatility with Bitcoin (BTC) plummeting from $94,400 to a low of $89,256, marking a 5.3% drop within 24 hours.

After that, BTC surged back to now trading at $95,000 at the time of writing. This rebound reflects the market's efforts to maintain the price level above the key support threshold and creates the expectation that BTC price will bounce back up from here.

Excitement following the announcement of US President Donald Trump's re-election appears to be fading, while fears of a sell the news scenario ahead of his inauguration on January 20, 2025 grow.

Fear and Greed Index (The Fear and Greed Index) of shows an increase in greed in some traders, while the activity of the whales shows signs of slowing down.

Data from Santiment indicates that crypto trading volumes have fallen to the lowest level since before the US election on November 5, 2024. Meanwhile, the amount of Bitcoin on centralized exchanges (CEX) increased by 2,729 BTC, worth about $256 million, in just 24 hours.

The altcoin market remains in the red with widespread selling pressure. Major coins such as ETH, ADA, and WLD recorded declines of 5% to 8.8%.

The total market liquidation value in the last 24 hours amounted to $807.77 million, of which long orders accounted for $593 million. Ethereum was top in liquidation value with a total of $208 million wiped out, while coins like SOL and XRP also did not escape the downtrend, with liquidation values reaching $29 million and $20 million, respectively.

Notably, the largest liquidation order belonged to an ETH/USDC long order on Binance valued at $24.95 million.

On January 14, 2025, the total crypto market value (TOTAL) recorded a sharp decline to a low of $3.020 billion, before recovering and reaching the $3.200 billion mark. This is the lowest level since January 26, 2024.

This deep drop reflects widespread selling pressure as investors continue to adjust their portfolios in the face of important economic and political upheavals. Especially before the day Mr. Trump became president of the United States.

However, the rapid rebound to the $3,200 billion level suggests that there is still buying momentum from investors who are confident in the long-term potential of the crypto market. The total market capitalization chart shows that this is the eighth time in two months that the market has tested a critical support level around $3.200 billion, creating an important boundary that, if broken, could lead to a deeper correction in the near term.