Why Bitcoin and the crypto market are dropping again?

Bitcoin's price falls. Is this a temporary correction or the start of a bear market? Get the latest analysis and market insights.

Written by Charles Ledoux

Translated on January 16, 2026 at 09:41 by Simon Dumoulin

Copié

Why Is Bitcoin Dropping Today?

The crypto market is waking up with a hangover. Bitcoin is currently trading around $95,650, posting a decline of approximately 2% over the last 24 hours. This corrective move is directly linked to political uncertainties in Washington: the unexpected postponement of a key Senate vote (potentially related to regulation or strategic reserves) has triggered a wave of selling. Moreover, tensions in Iran are not helping the mood prevailing in the markets.

This climate of uncertainty is fueling risk-off movements. Institutional investors, favoring caution, are lightening their positions, dragging down the entire altcoin market in their wake.

Technical Analysis: Is the $95,000 Support in Danger?

From a chart perspective, Bitcoin is emerging from a prolonged phase of sideways consolidation. The price is currently testing a critical level. The $95,000 zone is acting as a major psychological and technical support. If the bulls fail to defend this bastion, the short-term market structure could weaken.

Bitcoin price chart over 3 days with VPFR, CVD, and FBB indicators

Momentum indicators are showing signs of weakness, but are not yet in extreme oversold territory. To validate a recovery, BTC must imperatively reclaim $99,000 and transform this former resistance into support. Conversely, a daily close below 95k would open the trapdoor toward lower levels, liquidating overexposed long positions in the process.

For now, Bitcoin is attempting to hold above its 3-day POC at $95,300. But the longer Bitcoin spends below this resistance at $98-99,000, the higher the probabilities of a retracement below $95,000 become.

Scenarios: Technical Bounce or Purge Toward $90,000?

Two trajectories are emerging for the next 48 hours:

Bullish Scenario: Bitcoin bounces off $95,000, forming a lower wick that indicates strong buying demand (buy the dip). The price climbs back toward $97,500 then attacks the $100,000 resistance.
Bearish Scenario: Selling pressure intensifies. The 95k support gives way under volume. BTC could then slide toward the next major liquidity zone located between $90,000 and $92,000.

As volatility sets in, the question every trader is asking is: Is this the ideal moment to accumulate Bitcoin before the next bullish leg?

Roro Crypto – Get free trades on our private group!

Related Articles:

Charles Ledoux

Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.

DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.

DISCLAIMER

This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.

InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.