Bitcoin is showing signs of weakness, as it is fluctuating between $95,850 and $97,729 in the past hour. It holds a market value of $1.917 trillion with a global trading volume of $47.52 billion. Its daily price range has been between $95,850 and $99,131, currently sitting 11% below its all-time high. While many are expecting a recovery soon, there are hurdles on the way as predicted by 10X reserve let’s dive into the insight.
Who Is Selling #Bitcoin?
What will happen when the #Altcoin selling stops?👇1-14) Our Bitcoin trend model turned bearish on February 2, while the Diamond Top pattern shows BTC drifting lower on the right-hand side—a formation that suggests bearish consolidation and the… pic.twitter.com/CfTBQPHEh2
— 10x Research (@10x_Research) February 7, 2025
What’s Dragging Bitcoin Down?
Reacting to the recent geo-political scenario’s, Bitcoin is struggling to maintain its bullish level of $100K. Looking at the loophole, 10x Research pointing out a bearish trend that started on February 2. Their analysis highlights a “Diamond Top” pattern, which often signals that prices might fall after a period of growth. This suggests Bitcoin could lose some of its gains since its November rally.
Bitcoin was close to breaking out, targeting $105,500, but a few things changed the game. U.S. President Donald Trump’s announcement of new tariffs added a layer of uncertainty, shaking investor confidence. At the same time, the Federal Reserve’s tough stance on interest rates made traders even more cautious. As a result, many investors are holding back, waiting for better market conditions before diving back in.
Ethereum’s Impact on the Market
While Bitcoin tried to bounce back, Ethereum experienced a sharp drop, adding to the crypto market’s instability. Despite Eric Trump supporting ETH, this decline was mainly due to complex trading strategies like option gamma hedging and futures liquidations, which can cause big price swings. Interestingly, past large Ethereum sell-offs haven’t led to strong recoveries, hinting that the crypto market could still be under pressure.
What’s Next for Bitcoin and Altcoins?
A recent flash crash triggered by new tariffs imposed by Donald Trump caused a massive sell-off across stocks, commodities, and crypto. The biggest hit was taken by altcoins, with the total market cap dropping from $1.46 trillion at the end of January to $1 trillion by February 3, wiping out $460 billion in value.
In the meanwhile Bitcoin’s rising dominance is also directing towards delayed altcoin season. In the meanwhile Trump’s administrations comments to focus more on stablecoins is breaking the confidence of investors on alarge scale. While Bitcoin Reserve Plan is becoming less prominent in Trump’s 100 days strategy.
With weak technical signals and ongoing economic uncertainty, Bitcoin might soon experience more price drops. Some believe the market might stabilize, while others think there could be more downside ahead. For now, it’s a wait-and-watch game as traders stay cautious, looking for signs of a potential turnaround.
