Bitcoin (BTC) Price Drops 5.7% to $95,000 as Matrixport Predicts Consolidation Phase

Bitcoin price dropped 5.7% over the past 24 hours, falling to $95,000 after hitting highs of $102,000 earlier this week.

The cryptocurrency’s price movements follow the recent analysis by Matrixport, a leading digital asset platform, which highlighted that changes in global liquidity often act as leading indicators for Bitcoin price action, typically observed over 13-week cycles.

The firm linked this trend to the re-election of Donald Trump and the strengthening US dollar, which has tightened dollar-denominated liquidity.

Also read: Bitcoin $120K Predictions Surge with Trump’s Inauguration

Matrixport stated that it anticipates this “consolidation to be temporary” because the broader sentiment surrounding risky assets like Bitcoin and equities, remains “constructive.” However, the firm has advised traders to maintain caution during periods of liquidity shifts because these indicators have “proven to be reliable indicators in the past.”

The platform also noted that Bitcoin’s increasing integration with traditional finance rails has made it more sensitive to global liquidity conditions. Correlations between Bitcoin and the US dollar have strengthened, with tighter liquidity bolstering the dollar while exerting downward pressure on BTC prices.

Bitcoin Price Analysis

Considering the weekly Bitcoin chart below, it is clear that the accumulation of the world’s largest digital asset is on the rise in the long term and the demand from investors is on a steady rise since 2023.

On the other hand, the Relative Strength Index (RSI) on the weekly chart reads a value of 65.02 which means that the bulls are overall in control of the market leader’s price action and the gradient of the line suggests slight back-and-forth movement. In all, it is clear that the demand for BTC is still very high.

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