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Reading: Why Bitcoin Is Dropping Today and When BTC Price Could Recover?
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EdaFace Newsfeed > Latest News > Crypto News > Why Bitcoin Is Dropping Today and When BTC Price Could Recover?
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Why Bitcoin Is Dropping Today and When BTC Price Could Recover?

vitalclick
Last updated: January 19, 2026 6:50 am
4 hours ago
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Contents
Why Is Bitcoin Price Down Today?Exchanges and Whales Add to the PressureTechnical Breakdown: Support Failed FastOn-Chain Data Signals Selling ExhaustionWhen Will Bitcoin (BTC) Price Go Back Up?

The Bitcoin price today experienced a sharp sell-off, dropping to $ 92,000 as global crypto markets declined by nearly 3%. The sudden drop shocked traders, but on-chain data and market structure suggest this move may be more of a leverage reset than the start of a full trend reversal.

Why Is Bitcoin Price Down Today?

Bitcoin’s drop was driven by rising global trade tensions. The European Union announced nearly $100 billion in retaliatory tariffs, which immediately pushed investors into risk-off mode. As a result, Bitcoin fell nearly 3%, while gold surged past $4,660, a clear sign that money was moving out of risky assets and into safe havens.

Markets were further shaken after former U.S. President Donald Trump threatened new tariffs targeting eight European countries. This added to uncertainty across global markets and increased selling pressure on crypto.

This triggered more than $850 million in crypto liquidations, mostly from bullish traders who were forced to exit their positions. The trade war worries and mass liquidations turned a normal pullback into a sharp Bitcoin sell-off.

The primary trigger came from traditional markets. U.S. stock futures opened lower amid rising U.S.–EU trade tensions, which immediately pressured risk assets. Crypto reacted instantly.

As Bitcoin slipped below key support near $93,000, a massive liquidation cascade followed.

According to CoinGlass, 241,209 traders were liquidated in the past 24 hours, resulting in a market loss of $863.97 million. The largest single hit was a $25.83 million BTC-USDT position on Hyperliquid.

Within just one hour, more than $545 million in long positions were liquidated, turning a normal pullback into a violent flash crash.

Also Read: Why are Bitcoin, Ethereum and XRP Prices Crashing Today?

Exchanges and Whales Add to the Pressure

Blockchain data also shows heavy selling pressure from large players:

  • Insiders sold 22,918 BTC
  • Coinbase sold 2,417 BTC
  • Bybit sold 3,339 BTC
  • Binance sold 2,301 BTC
  • Wintermute sold 4,191 BTC

In total, over $4 billion worth of Bitcoin was sold within a short period, intensifying the panic and pushing the price through support zones without any meaningful bounce.

Technical Breakdown: Support Failed Fast

Technically, Bitcoin failed to close the week above the important $94,000 support level, which weakened market confidence. Once the price slipped below $93,000, many traders’ stop-loss orders were triggered, causing selling to speed up. As a result, Bitcoin quickly dropped from around $95,467 to $92,284 in just a few hours a 3.3% fall.

This fall came with a sudden jump in trading activity, showing that many traders were rushing to exit their positions in panic, not calmly selling for profit. Bitcoin also did not bounce at expected support areas, proving that heavy forced selling was in control. Such fast, straight drops usually happen during mass liquidations, not normal market corrections.

On-Chain Data Signals Selling Exhaustion

Despite the sharp fall, blockchain data suggests that most short-term sellers may already be done selling. For weeks, recent Bitcoin buyers were selling at a loss, showing fear in the market. During the crash, this selling pressure peaked, which usually happens when weak holders finally give up.

Now the data shows a change. Recent sellers are no longer rushing to exit, and selling pressure is easing. This shift often appears near short-term bottoms, not at major tops. As long as this trend continues, it suggests that price drops are being bought by stronger investors rather than pushed lower by panic selling.

Also Read : Bitcoin Price Prediction 2026, 2027 – 2030: How High Will BTC Price Go?

When Will Bitcoin (BTC) Price Go Back Up?

Bitcoin bounce setup forming! 🚨$BTC just swept liquidity into a rising trendline that has held multiple times.

That yellow circle is the key area I’m watching.

Price rejected quickly and reclaimed above the intraday low, which is what you want to see if buyers are still in… pic.twitter.com/lbP1fCYKD6

— CryptoBusy (@CryptoBusy) January 19, 2026

Technically, signs of a short-term bounce are starting to appear. Bitcoin briefly dipped below an important rising support line but quickly moved back above its intraday low, showing that buyers stepped in to defend this area. This is usually a positive signal after a sharp drop.

The price structure still shows higher lows in the short term, meaning the broader uptrend has not been clearly broken yet. If Bitcoin continues to hold this support, a recovery toward the $94,500 to $96,000 zone is possible.

However, for stronger confidence, Bitcoin needs to move back above $95,000 and stay there. This would confirm that the crash was mainly caused by liquidations, not a true trend change. If support fails, the risk of a deeper fall increases.

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