20.01.202609:29 Forex Analysis & Reviews: Bitcoin plunges below $91,000

Bitcoin plunged to around $91,000 today, and it appears this may be far from the bottom of the bear market. Ethereum, like other altcoins, is also under heavy selling pressure.

The flight from risk assets and cryptocurrencies is directly linked to the geopolitical conflict between the US and the EU over Greenland, which unnerves traders and investors and pushes them back toward safer instruments. The sudden new conflict, like a storm in a calm harbor, caught many market participants off guard after weeks of relatively stable gains in crypto and other high?risk assets.

Tensions over Greenland, a strategically important island, exposed deep rifts between the world's two largest economic blocs. A serious struggle for control of Arctic resources and geopolitical influence has unfolded, naturally affecting investor sentiment. Fears of economic sanctions, trade wars, and even armed conflict have led many to reassess their strategies and relocate assets to safer havens. Gold, traditionally seen as a safe asset, has returned to the spotlight. Demand for the precious metal has surged, pushing prices higher, while equities and cryptocurrencies have taken a hit.

Bitcoin, Ethereum and other major cryptocurrencies have suffered sharp declines, showing that even digital?asset proponents are not immune to geopolitical risk. In the current environment, the short?term outlook for cryptocurrencies is murky, and many analysts expect continued volatility and uncertainty.

Trading recommendations

Bitcoin

Buyers are currently targeting a return to $92,100, which opens a direct path to $94,000 and then to $95,800. The farthest target is the high near $97,600; breaking that would signal attempts to return to a bull market. In case of a decline, buyers are expected at $90,500. A move back below that area could quickly push BTC toward $88,700. The farthest downside target is $86,300.

Ethereum

A clear hold above $3,192 opens a direct path to $3,257. The farthest target is the high near $3,340; surpassing that would indicate strengthening bullish sentiment and renewed buyer interest. In case of a decline, buyers are expected at $3,129. A move back below that area could quickly push ETH toward $3,072. The farthest downside target is $2,997.

Chart indicators

• Red indicators represent support and resistance levels, where a slowdown or active price increase is expected.
• Green represents the 50-day moving average.
• Blue indicates the 100-day moving average.
• Light green signifies the 200-day moving average.

Crossovers or tests of the moving averages usually halt or set the market's momentum.