Bitcoin Falls Below $97K as Death Cross Looms

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• Bitcoin breaks below $97K after failing to defend critical support.
  
• Death Cross and declining OBV signal increased bearish risk.
  
• Traders should monitor $93K–$95K for potential rebounds.

Bitcoin has taken a sharp hit, breaking below the $100,000 psychological barrier and sliding to an intraday low of $96,712. After holding above $100K for five months, the market has seen indecisive buying, pushing BTC toward critical support levels. The key question now: is Bitcoin entering a bear market, or will bulls regain control in the coming sessions?

Market Moves: Altcoins Hold Up

While Bitcoin struggles, some altcoins show relative strength, attracting rotation from investors seeking alternatives. Trading volumes for BTC surged from $85 billion to over $106 billion during the dip, signaling heightened selling pressure. Meanwhile, open interest fell to around $66 billion, indicating reduced long positions. Market watchers suggest that whale exodus, year-end tax strategies, and a shift toward other assets are contributing factors behind BTC’s underperformance. Notably, Bitcoin has lagged behind traditional benchmarks like gold, the S&P 500, and the Nasdaq in Q4—a historically bullish period.

Also Read: Bitcoin Goes DeFi on Hedera: What This Means for BTC Investors

Technical Outlook: Death Cross Looms

Bitcoin’s price action reflects the bulls’ weakening influence. After failing to defend key supports at $115K and $106.8K, BTC now faces the $97K–$99K zone, which coincides with a long-term ascending trendline. A clean daily close below this range could open the door to $92K–$94K. On-chain indicators add to the bearish case: the On-Balance Volume (OBV) shows declining buying pressure, while the 50/200-day moving averages are approaching a Death Cross—a pattern often linked to deeper market corrections. However, repeated rebounds from this trendline in 2024–2025 hint that buyers may still step in.

What Comes Next?

Traders should watch the $93K–$95K support zone closely. While the current sell-off raises concerns, it’s too early to declare a full bear market. Bitcoin could still recover toward $105K if buyers regain conviction and volume supports the rebound. The next few trading sessions will be decisive, as BTC either stabilizes or faces further downside risk.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.