Bitcoin Price Records Biggest Weekly Drop in 15 Weeks. Time to Sell?

Summary:
• Bitcoin price has injected a bearish sentiment in the market with a return to five digits. However, there's good reason to expect a reversal.

Bitcoin price broke decisively below the $100k mark on Thursday and extended the decline on Friday, registering its biggest weekly drop since late August. BTC traded at $96,668 at the time of writing , extending its losing streak to three successive days-the first such streak since November 4. As a result, many investors are weighing whether it might be time to sell their coins.

Fed interest rate decision drives Bitcoin price toward key support

The $96,000 mark has been a key support level for Bitcoin price since late November. Therefore, action above that point could be a sign of a correction, with a high potential for a continuation.

The coin’s latest slump was triggered by the Federal Reserve’s move to reduce interest rates by 0.25 percent. That boosted investors’ confidence in financial markets, stealing some limelight away from the crypto market.

Despite its recent troubles, Bitcoin continues to attract institutional interest. Microstrategy and Blackrock have been at the forefront of institutional purchases, with the former having bought $1.5 billion worth of the crypto coin and the latter spending $770 million on a similar purchase in December.

Other institutions with significant purchases this month include Semler Scientific and Riot Platforms, which spent a combined $89 million on BTC purchases in the same month. Recent patterns have shown that institutions typically wait for pullbacks before making major purchases. Therefore, a continuation of the same pattern could propel Bitcoin price reversal.

Bitcoin price prediction

Bitcoin price pivots at $97,750 and the sellers are currently in control as signaled by the RSI indicator. The downward trajectory will likely prevail if resistance persists at the pivot. With the sellers in control, the first support will likely be at $96,500. However, a stronger downward momentum could break below that level and test 95,605.

On the other hand, moving above $97,750 will signal control by the buyers. In that case, the price could move higher and encounter the first resistance at $98,850. Moving above that level will invalidate the downside narrative. Also, the resulting momentum could drive the price higher and take BTCUSD to the second resistance at $100,000.