Bitcoin Value Falls Under $90K as Analyst Points Out a ‘Cautionary’ Period

Key Takeaways:

• Bitcoin fell under $90,000 as market sentiment deteriorated and buyers remained inactive.
• Continuing geopolitical tensions and renewed uncertainty regarding Trump’s tariffs are exerting pressure on BTC.
• Analysts suggest the market is in a “wait-and-see” stage, with neither buyers nor sellers demonstrating strong conviction.
• ETF outflows and inherent weaknesses in altcoins indicate that capital is consolidating in Bitcoin, though without robust momentum at this time.
• Repeated unsuccessful attempts around $98,000 reveal that selling pressure persists on rallies, rendering rebounds tenuous for the moment.

Bitcoin (BTC) began the week with a decline. The market sentiment shifted rapidly. Just the previous week, some investors were still discussing a potential rise toward $100,000. This week altered that sentiment. Bitcoin has lost its support level near $90,000.

A number of factors are impacting Bitcoin’s valuation. One of these is Donald Trump’s rhetoric concerning Greenland. Tensions have been escalating, and this conflict has now extended into tariff discussions.

After certain nations openly opposed Trump’s efforts to assert control over Greenland, he introduced a new 10% tariff package aimed at them. This has contributed another layer of uncertainty to the marketplace.

Trump’s tariffs have resurfaced in discussions. They never truly disappeared, but recent events have brought them back into the spotlight. In January, the US Supreme Court conducted several sessions where investors anticipated clarity on whether the president possesses the authority to impose tariffs of this magnitude.

No resolution was reached. This lack of clarity has left Bitcoin, along with the wider cryptocurrency market, in a state of suspension.

‘Buyers Aren’t Confident Enough Yet to Step In Aggressively’

David Dobrovitsky, CEO of Dobrovitsky Strategic Advisory, informed Cryptonews that the market is effectively stagnant. Neither party is exhibiting conviction. Consequently, Bitcoin remains confined within a narrow range:

Bitcoin and the broader cryptocurrency market are caught in a wait-and-see phase, consolidating around $89,000–90,000 following the recent decline rather than breaking down or rebounding sharply. Selling pressure has eased, but ‘buyers aren’t confident enough yet to step in aggressively,’ which keeps liquidity and momentum subdued.

Dobrovitsky further notes that this weakness extends beyond short-term price fluctuations. He believes that many altcoins have experienced a more structural loss of value:

Simultaneously, years of uncertainty and thin liquidity have resulted in a structural devaluation of numerous altcoins, with capital being concentrated in BTC and a select few resilient projects while the long tail continues to diminish.

This transition has redirected more capital towards Bitcoin, but it has yet to result in significant buying pressure.

ETF statistics tell a similar tale. Institutional investors seem cautious and concentrated on risk mitigation. According to CoinGlass, Bitcoin ETFs experienced outflows of nearly $709 million on January 21. This marked the largest single-day outflow since November 20, 2025, when outflows hit $903 million.

Source: CoinGlass

Bitcoin Price Attempted to Rise, but Did Not Succeed

In recent weeks, Bitcoin made multiple efforts to recover toward $100,000. BTC reached $98,000 before sellers quickly intervened. This reaction was anticipated. Since that point, Bitcoin has been trapped in a narrow range. Each rebound faces selling pressure from investors who purchased earlier and are now seeking to exit at breakeven. As a result, rebounds appear fragile and precarious.

Analysts at Glassnode have characterized the current situation as a “moderate bear phase.” Based on their data, the market has been fluctuating for some time between support near $81,100 and the average cost basis of short-term holders.

No indications of panic selling are present. However, every upward attempt encounters supply from investors who accumulated during the first three quarters of 2025 and are now utilizing rallies to decrease their exposure.

At this point, Bitcoin remains in a state of uncertainty. The market is observing and awaiting further developments.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

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