Why did the price of BTC fall?

Bitcoin (BTC) dropped 0.64% in the last 24 hours, continuing a 2.69% decline over the past week, though it’s still up 1.14% for the month. This fall happened alongside a broader crypto market drop of 0.81%. Here’s why:

1. Liquidations Pressure: More than $50 million worth of BTC long positions were forced to close, leading to selling.
2. Technical Resistance: BTC couldn’t stay above the $91,214 key level, triggering automatic sell orders.
3. Neutral Sentiment: The Fear & Greed Index stayed at 41, showing weak buying interest.

Deep Dive

1. Long Liquidations (Negative Impact)

What happened: Over $50.76 million in BTC long positions were liquidated in the past day—a 74.69% increase from the day before (CoinMarketCap). Total crypto liquidations topped $118 million, mostly from long positions.
Why it matters: When traders use borrowed money to bet on price increases (longs) and the price falls, exchanges automatically close these positions to limit losses. This forced selling adds extra downward pressure on prices, especially when there aren’t many buyers around.

2. Technical Resistance (Negative Impact)

What happened: Bitcoin struggled to rise above the 23.6% Fibonacci retracement level at $92,325 and tested the daily pivot point at $91,214. The Relative Strength Index (RSI) was neutral at 54.3, and the MACD indicator showed some bullish signs but weakening momentum.
Why it matters: Not breaking above $92,325 led traders to take profits and triggered stop-loss orders, which are automatic sell orders to limit losses. The pivot point at $91,214 is a key short-term price level—holding above it could help stabilize prices, but falling below may encourage more selling.

3. Sentiment Stagnation (Neutral Impact)

What happened: The Crypto Fear & Greed Index remained steady at 41, indicating a neutral mood among investors. Funding rates for derivatives also flattened, meaning fewer incentives for traders to open new long positions.
Why it matters: Neutral sentiment usually means the market is waiting for clearer signals before making big moves. This can lead to sideways price action or small corrections as investors stay cautious.

Conclusion

Bitcoin’s recent dip is mainly due to forced selling from leveraged long positions and resistance near $92,325. While these factors caused short-term price drops, the overall market mood remains calm, suggesting no panic selling. For investors, this looks like a normal pullback within a longer-term upward trend.
What to watch: Will BTC hold above the $91,214 pivot point in the next 24 hours as open interest shifts? This could signal whether the price stabilizes or faces more downward pressure.

What could affect the price of BTC?

Bitcoin’s price outlook is cautiously positive, supported by strong buying from large investors and favorable economic factors, but it faces some technical challenges.

1. Big Investors Buying
   Record purchases by large Bitcoin holders show confidence and reduce selling pressure.
2. Economic Factors
   Lower inflation numbers increase chances of interest rate cuts, which historically help Bitcoin’s price.
3. Price Resistance
   Bitcoin struggles to move above $91,000-$92,000, with a risk of dropping below $89,000.

Deep Dive

1. Big Investors Buying (Positive Sign)

Overview:
Bitcoin wallets holding 100 or more BTC recently added 269,822 coins (worth about $23.3 billion), marking the largest monthly increase in 13 years. This follows a trend where these “whales” buy heavily near price lows, like the 88,000 BTC they bought in December 2025 when Bitcoin dipped to $112,000.

What this means:
When large investors keep buying, it shows they believe in Bitcoin’s long-term value. This reduces the number of coins available for sale, which can push prices higher. In the past, similar buying patterns were followed by price rallies within 1 to 3 months.

2. Economic Factors (Positive Sign)

Overview:
In January, the Consumer Price Index (CPI) rose 2.7% year-over-year, lower than expected, increasing the likelihood of Federal Reserve interest rate cuts to 94% (BLS). This is similar to June 2025, when a 2.4% CPI reading led to a 15% jump in Bitcoin’s price. Additionally, the SEC approved new ETF rules in July 2025 that reduce costs for institutional investors.

What this means:
Lower interest rates usually weaken the U.S. dollar, making scarce assets like Bitcoin more attractive. Combined with cheaper and more efficient investment options like ETFs, this could bring billions of dollars from traditional finance into Bitcoin, similar to the $50 billion ETF inflow seen in 2025.

3. Price Resistance (Mixed Outlook)

Overview:
Bitcoin faces strong selling pressure around $91,000 to $92,000. Support levels are holding at $89,000, with a critical floor at $88,000 supported by whale bids. Technical indicators like the Relative Strength Index (RSI) show signs of weakening momentum despite recent price rebounds.

What this means:
If Bitcoin fails to break above $92,000, it could trigger sell-offs and test support near $88,000. On the other hand, closing above $92,000 might activate automated buying programs aiming for $94,000. The current price pattern is similar to September 2025, which preceded a 22% price increase.

Conclusion

Bitcoin’s near-term price depends on whether it can break through the $92,000 resistance level, supported by strong buying from whales and positive economic trends. However, technical challenges could cause a pullback to $88,000. For investors, these price levels may offer good opportunities to buy.
Will lower inflation and rate cuts finally push Bitcoin past its technical barriers?

What are people saying about BTC?

The conversation around Bitcoin (BTC) is divided between optimistic investors aiming for $100,000 and cautious traders warning of potential drops. Here’s what’s trending right now:

1. Some analysts believe BTC could reach $100,000 by the end of the month.
2. Traders are split, with some seeing signs of a decline and others spotting opportunities for gains.
3. Real-time alerts are highlighting chances to sell as key support levels weaken.

In-Depth Look

1. Bullish Outlook: BTC Could Hit $100K Soon

@bpaynews predicts:
"$BTC Price Prediction: Targets $95,000-$100,000 by End of January 2026"
– Posted on January 12, 2026
See original post
What this means: This is positive news for Bitcoin. Large investors, often called “whales,” have recently added about $23.3 billion worth of BTC, which supports the idea that the price could rise toward important resistance levels near $100,000.

2. Bearish Signal: Possible Downside Ahead

@Inam_Az1 shares a cautious view:
"Bias: Bearish (possible downside) ⭐ Probability: 7/10 ⚠️ Risk: Low"
– Posted on January 9, 2026
See original post
What this means: This suggests a higher chance that Bitcoin’s price could drop toward $90,400. If this happens, it might trigger automatic sell orders (stop-losses), which could push the price down further in the short term.

3. Bullish Swing Setup: Potential for Gains

@Inam_Az1 also notes a positive scenario:
"Bias: Bullish (possible upside) ⭐ Probability: 8/10 ⚠️ Risk: Low"
– Posted on January 8, 2026
See original post
What this means: This outlook points to a strong chance of a rebound, with Bitcoin possibly gaining 2-10% above the $90,500 support level.

4. Sell Signal: Support Level Broken

@Adanigj issues a warning:
"Bitcoin broken support 1 SELL BITCOIN 90307.77"
– Posted on January 12, 2026
See original post
What this means: This is a bearish sign indicating that Bitcoin’s price has fallen below a key support level around $90,300. This could lead to increased selling pressure and more price volatility in the short term.

Conclusion

The outlook for Bitcoin is mixed right now. Technical analysts are divided between expecting a breakout above $100,000 and a breakdown below $90,000-$91,000. Keep an eye on the $90,000 support level — if it holds, it could boost bullish momentum. But if it breaks, the bearish predictions may come true.

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What is the latest news about BTC?

Bitcoin is moving forward with support from new regulations and growing interest from big investors. Here are the key updates:

1. New Bipartisan Bill Protects Bitcoin Developers (January 13, 2026) – Senators propose limiting legal risks for blockchain developers who don’t handle users’ money.
2. Standard Chartered Launches Crypto Services for Big Investors (January 13, 2026) – The bank’s venture unit plans to offer secure storage and trading services for institutional Bitcoin clients.
3. Large Investor Switches to a $17.95M Bitcoin Bet (January 13, 2026) – A major trader closed a losing short position and opened a highly leveraged long position during Bitcoin’s price consolidation.

Deep Dive

1. New Bipartisan Bill Protects Bitcoin Developers (January 13, 2026)

What happened: Senators Cynthia Lummis (R-WY) and Ron Wyden (D-OR) introduced the Blockchain Regulatory Certainty Act. This bill aims to make it clear that developers of open-source blockchain software are not considered money transmitters under federal law—unless they actually control users’ funds. This comes after some legal uncertainty following government actions against developers of privacy tools.

Why it matters: This is good news for Bitcoin because it lowers legal risks for the people building the technology. It could speed up improvements like better privacy features and scaling solutions. The bill also shows that both political parties want practical rules for cryptocurrency.
(Decrypt)

2. Standard Chartered Launches Crypto Services for Big Investors (January 13, 2026)

What happened: Standard Chartered, through its venture arm SC Ventures, is creating a crypto prime brokerage. This service will provide secure storage (custody), tokenization, and trading access for institutional clients. This follows the bank’s launch of spot trading for Bitcoin and Ethereum in July 2025 and partnerships with Coinbase and OKX.

Why it matters: This is positive for Bitcoin because it builds stronger infrastructure for big financial players to invest. Regulated custody services can increase Bitcoin’s liquidity and make it more attractive as a treasury asset for companies.
(Bitcoinist)

3. Large Investor Switches to a $17.95M Bitcoin Bet (January 13, 2026)

What happened: A large trader (often called a “whale”) closed a short position on Bitcoin that lost $65,000 and opened a new long position with 196.88 BTC (worth about $17.95 million) using 40 times leverage at a price of $91,447 per BTC. This shows a strong bet on Bitcoin’s price going up despite recent losses.

Why it matters: This is a mixed signal for Bitcoin. It shows confidence from a big trader but also highlights the risks of using high leverage, which can lead to big losses if the market moves against them. It reflects optimism but doesn’t guarantee Bitcoin’s price will keep rising.
(Binance Square)

Conclusion

Bitcoin is gaining clearer regulatory support and stronger backing from institutional investors, which helps build a solid foundation. However, high-risk bets like the whale’s leveraged position remind us that Bitcoin’s price can still be volatile. The big questions for the first quarter are whether new developer protections and growing banking services can balance out price swings caused by derivatives trading.

What is expected in the development of BTC?

Bitcoin’s 2026 plan balances important technology upgrades with growing acceptance by institutions.

1. Strategic Bitcoin Reserve (Mid-2026) – The U.S. is planning to hold Bitcoin in federal and state treasuries.
2. Quantum Defense Prep (2026) – Preparing Bitcoin to resist future quantum computer threats.
3. Lightning Network Splicing (Ongoing) – Making Bitcoin’s payment channels more flexible and efficient.
4. Regulatory Clarity (Late 2026) – Clearer rules for Bitcoin ETFs and state-level Bitcoin policies.

Deep Dive

1. Strategic Bitcoin Reserve (Mid-2026)

Overview: The U.S. government, under the Trump administration, is working on a plan to create a Strategic Bitcoin Reserve by July 2026. This means federal and state governments could hold Bitcoin as part of their reserves. Importantly, this would not use taxpayer money directly but might involve partnerships with Bitcoin miners or converting fees into BTC (Bitcoinist).
What this means: This is generally positive for Bitcoin. It shows growing trust from institutions, though political changes could affect how smoothly this plan is carried out.

2. Quantum Defense Prep (2026)

Overview: Bitcoin Optech’s 2025 report highlights ongoing work to protect Bitcoin against future quantum computer attacks. This includes testing new signature methods like BIP360 (P2TSH), Winternitz, and STARKs, which are designed to be quantum-resistant. The goal is to eventually move away from current cryptographic methods like ECDSA and Schnorr.
What this means: This is a positive long-term move. Strengthening Bitcoin’s security against future threats helps ensure its durability, though it may take time before these changes are fully adopted.

3. Lightning Network Splicing (Ongoing)

Overview: The Lightning Network, which enables faster and cheaper Bitcoin payments, now supports “splicing.” This feature lets users add or remove funds from payment channels without closing them, making transactions smoother and more scalable.
What this means: This improves Bitcoin’s everyday usability. Better Lightning Network features could encourage more people to use Bitcoin for small, daily payments, but it depends on wallet providers adopting this technology.

4. Regulatory Clarity (Late 2026)

Overview: South Korea’s Financial Services Commission plans to finalize rules for spot Bitcoin ETFs by late 2026. Meanwhile, the U.S. has seen $5.13 billion flow into Bitcoin ETFs since April 2025, and over 20 states are working on laws to allow holding Bitcoin in reserves (Bitget).
What this means: Clearer regulations could attract more institutional investors. However, delays or strict rules might slow down Bitcoin’s growth in these markets.

Conclusion

Bitcoin’s roadmap for 2026 focuses on strengthening its technology—like preparing for quantum threats and improving the Lightning Network—while also encouraging institutional adoption through clearer regulations and reserve policies. The big question remains: Will global political and economic changes speed up Bitcoin’s acceptance as a treasury asset, or will technical challenges slow its progress?

What updates are there in the BTC code base?

Bitcoin’s software received major updates in late 2025, focusing on making the network more scalable, secure, and developer-friendly.

1. OP_RETURN Data Limit Removed (Oct 2025) – Transactions can now include much larger amounts of data (up to 4MB), opening the door for more advanced on-chain applications.
2. Multisig Privacy Upgrade (Oct 2025) – A new Bitcoin Improvement Proposal (BIP) allows participants in multisignature wallets to help approve transactions without seeing the full transaction history, boosting privacy.
3. Developer Momentum Surge (2025) – 135 developers contributed improvements, enhancing code efficiency and passing a thorough security audit.

Deep Dive

1. OP_RETURN Data Limit Removed (Oct 2025)

What happened: Bitcoin Core version 30.0 removed the previous 80-byte limit on OP_RETURN outputs. OP_RETURN is a way to attach extra data to Bitcoin transactions. Now, users can embed larger files like documents, certificates, or NFT details directly on the blockchain.
This change is a policy update, not a fundamental rule change, and allows data up to Bitcoin’s block size limit (around 4MB). While miners can still set their own limits, default Bitcoin nodes now support this increased flexibility.
Why it matters: This update lets people use Bitcoin for more than just sending money — for example, verifying academic credentials or digital identities on-chain. However, it could also lead to bigger blockchain sizes, which might make running a Bitcoin node more resource-intensive.
(Source)

2. Multisig Privacy Upgrade (Oct 2025)

What happened: A new BIP called "Chain Code Delegation" improves privacy for multisignature wallets. Multisig wallets require multiple people to approve a transaction, often used by businesses or custodians.
With this upgrade, participants can help approve transactions without accessing the full transaction history or balances. They do this by sharing only specific chain codes needed for each transaction.
Why it matters: This makes Bitcoin more appealing for institutional use by enhancing privacy and security. Companies can enforce spending rules without exposing all their financial activity, supporting wider adoption while keeping control in users’ hands.
(Source)

3. Developer Momentum Surge (2025)

What happened: In 2025, 135 developers contributed to Bitcoin Core, a 35% increase from the previous year. They improved the code’s efficiency and passed the first independent security audit by Quarkslab.
The audit found no serious security issues and praised the code as mature and reliable. Updates included performance improvements and better management of unspent transaction outputs (UTXOs).
Why it matters: Strong developer activity and security reviews help keep Bitcoin’s software robust and innovative. This reduces technical risks and supports the network’s long-term health and security.
(Source)

Conclusion

Bitcoin’s late-2025 updates focused on expanding flexibility (OP_RETURN), enhancing privacy for institutions (BIP), and strengthening the codebase (developer growth and audit). These improvements show Bitcoin evolving beyond just digital money. Could these changes spark new Bitcoin-based applications in 2026?
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