Will BTC collapse below $100k again?

With President Donald Trump not making any cryptocurrency-related announcements, Bitcoin is barely breaking even this week. Despite the pullback, Bitcoin closed the day on a positive note on Monday with gains close to 1%. However, today the price of Bitcoin is down -1.63%, while investors wonder if this decline could lead to another collapse that pushes Bitcoin below $100,000.

Will Bitcoin collapse below $100,000 again?

Yes, the price of Bitcoin may fall below $100,000 if Donald Trump, the 47th President of the United States, or his administration does not make any announcements related to cryptocurrencies. At least, that’s how the crypto markets feel. When Trump ended the ceremony without any cryptocurrency-related announcements, the newly launched Trump Coin fell 40% in the next eight hours. Bitcoin also fell by almost 7% in about 8 hours, causing a broader correction in the cryptocurrency market.

Key cryptocurrency announcements to expect from US President Donald Trump

Here are two major announcements that the cryptocurrency markets can expect today, January 21st.

1. The upcoming pardon of Silk Road’s Ross Ulbricht.
2. Create a strategic Bitcoin reserve.

Instead of these announcements, the cryptocurrency market received notifications of cryptocurrency purchases made by Trump Global’s Liberty Financial. The company has obtained the following crypto tokens:

• $47 million worth of Wrapped Bitcoin (WBTC)
• $47 million in Ethereum
• $4.7 Million Aave Value (AAVE)
• TRON (TRX) is valued at $4.7 million
• $4.7 million worth of Chainlink (LINK)

MicroStrategy may steal headlines with its Bitcoin purchase plan

No matter what happens, investors need to note that long-term investors are waiting for Bitcoin to drop below $100,000 to buy Bitcoin at a discount. Saylor’s MicroStrategy could make headlines again as it plans to increase authorized shares to support its Bitcoin buying strategy. The main focus of this vote will include approving an increase in Class A common stock to facilitate the purchase of Bitcoin. MicroStrategy plans to increase its Class A common shares from 330 million to 10.3 billion and to increase its authorized preferred shares from 5 million to 1 billion.

Furthermore, MicroStartegy’s Michael Saylor posted the portfolio tracking chart once again, hinting at another purchase. Typically, these charts precede MicroStrategy’s Bitcoin buy announcements.

Switch to orange dots to mark the opening @RealDonaldTrumpBitcoin’s first boss! pic.twitter.com/5dxCVwKSFR

– Michael Saylor⚡️ (@saylor) January 20, 2025

Bitcoin Price Today: BTC Drops After Trump Doesn’t Address Cryptocurrencies

As mentioned above, Donald Trump’s inauguration was followed by a brief decline in the cryptocurrency market due to a lack of cryptocurrency-related advertising. As a result, BTC price is trading today at $101,752.0 after falling -1.63% over the past 24 hours. Despite this slight pullback, Bitcoin is up 0.53% this week and remains above the psychological support level of $100,000.

*Bitcoin price updated as of 6 am

Bitcoin technical analysis

The four-hour chart shows Bitcoin bouncing back from the highest value level of $100,614. Nearly 68% of trading volume was traded between the $93,181 and $100,614 range in the past two months. As long as this level remains above the upper limit of this range, investors can expect the bullish outlook to continue.

In addition, the market structure is also bullish on the intermediate T0 and higher time frame, indicating that the trend still favors buyers. Hence, a bounce off the $100,000 support level would trigger a rise in the price to the current ATH of $109,237. Furthermore, if buying pressure remains strong, the next key level for profit taking includes the 161.8% Fibonacci extension at $12,362.

Overall, the outlook for BTC remains significantly bullish, with Bitcoin price forecasts predicting a new ATH if the $100K support level holds. Any declines below $100,000 are likely to be short-lived and could trigger a massive buying spree, pushing the cryptocurrency above this critical level.

With the first pro-crypto president, the cryptocurrency market will likely begin a long bull run as Bitcoin and altcoins reach new highs.