- Bitcoin faced sell-side pressure from 3-6 month holders with an average cost basis of $112.6K.
- Bitcoin showed intraday volatility, driven by shifting geopolitical headlines and U.S. President Trump’s comments.
- Bitcoin price struggled to maintain its $90K level amid low volume and market uncertainties.
Bitcoin recently attempted to rise above its Short-Term Holder (STH) cost basis of $98.4K but encountered significant resistance. The price movement was hindered by sell-side pressure from holders who had held Bitcoin for 3-6 months, with an average cost basis of around $112.6K.
These holders increased their spending, realizing losses, which added pressure and reduced the upward momentum. As a result, Bitcoin entered a consolidation phase, characterized by low trading volumes and easing spot pressure.
Bitcoin’s Price Fluctuates with Geopolitical Headlines
On Wednesday, Bitcoin experienced intraday price swings, moving by thousands of dollars as traders responded to shifting geopolitical headlines and comments from U.S. President Donald Trump.
The world’s largest cryptocurrency started the day near $88,000 before briefly surging above $90,000 in early trading.
However, the rally was short-lived, and Bitcoin slid back into the $87,000 range after markets opened and reacted to geopolitical shifts. The price then rebounded again, approaching the $90,000 mark after President Trump announced a delay to planned trade tariffs.
Trump’s comments at the World Economic Forum in Davos, Switzerland, led to market fluctuations. The announcement came after what he called a “very productive meeting” with NATO Secretary General Mark Rutte.
Following this, Trump posted on his Truth Social platform, confirming the delay of tariffs originally set to take effect on February 1. Bitcoin’s price showed sensitivity to this news, as it regained the $90,000 level after the announcement.
ARK Invest’s View on Bitcoin’s Down Cycle
Amid these developments, ARK Invest CEO Cathie Wood stated that she believes Bitcoin may be nearing the end of its current down cycle. She suggested that the latest four-year drawdown could be the shallowest in Bitcoin’s history.
However, market fluctuations remain as traders monitor the broader geopolitical and economic landscape for further signs of change. With low volume and easing volatility, many analysts suggest that Bitcoin’s movement remains uncertain for the time being, though the possibility of continued consolidation exists.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
