Can Bitcoin crash to $69K? Watch these BTC price levels at 2-month lows

Bitcoin (BTC) headed for two-month lows at the Jan. 13 Wall Street open as US dollar strength punished crypto.

BTC price violates $90,000 after two months above

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping below $90,000 for the first time since mid-November.

Long anticipated by market observers, the move took daily losses to nearly 5% and liquidated more than half a billion dollars of crypto long positions, per data from monitoring resource CoinGlass.

A combination of market nervousness and surging US dollar strength ahead of the inauguration of US President-elect Donald Trump fueled a sell-off across risk assets.

The S&P 500 and Nasdaq Composite Index opened down 0.8% and 1.6%, respectively. 

Reacting, some doubled down on bearish BTC price targets. For Keith Alan, co-founder of trading resource Material Indicators, these extended as far down as the old 2021 all-time highs around $69,000.

“BTC has strong technical support around $86k where the bottom of the most recent consolidation channel has confluence with the 100-Day MA,” he wrote in part of a post on X, referring to the 100-day simple moving average. 

“Secondary support is at the prior (brief) consolidation at ~$76k, but the strongest support is at the R/S Flip line at $69k which was the 2021 Top.”

Alan was responding to a renewed warning from the day prior by veteran trader Peter Brandt over BTC/USD printing a bearish head and shoulders reversal pattern.

“Will Team Green or Team Red win the battle of the gashes?” he queried in a follow-up post as the losses accelerated.

More optimistic takes pointed to factors including the lowest funding rates since August, when crypto was reacting to the unraveling of the Japanese yen carry trade.

In addition to this, popular trader Daan Crypto Trades highlighted what he implied were uncanny similarities between current BTC price action and that from January 2024.

“$BTC Are we living in a simulation?” he summarized alongside a comparative chart.

Bitcoin, crypto “inflation hedge” in focus

Continuing, trading firm QCP Capital paid attention to upcoming US macroeconomic data prints that could potentially add further volatility to the mix.

Related: Strongest US dollar since 2022 bear market: 5 Things to know in Bitcoin this week

As Cointelegraph reported, inflation has become a fresh headache for both risk-asset traders and the Federal Reserve, while the latest employment data in the form of the December nonfarm payrolls (NFP) print helped cement the case for keeping interest rates “higher for longer.”

“Is inflation back? The US economy is certainly showing signs of overheating with Friday’s scorching NFP print of 256k, obliterating the forecasted 164k,” QCP told Telegram channel subscribers on the day. 

“After last week’s macro data, rumors of any imminent rate cuts have gone up in smoke as equities have tumbled lower. Potential Trump-era tariffs have also ignited more inflation fears.”

The firm added that any further macro surprises “could be a real test for crypto to step up as an inflation hedge.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.