Bitcoin rebound faces resistance amid market uncertainty

Bitcoin dropped nearly 11% in January, extending its losing streak to four months, the longest since 2018, amid broader market turbulence. As gold also faces a steep decline, opportunistic investors are eyeing the dip.

Bitcoin (BTC) is currently hovering just above $78,400. Indeed, the market capitalization of all coins rose by 1.7% to over $2.7 trillion, but that’s still a long ways away from its all-time high of approximately $4.1 trillion in August 2025.

Top tokens on Monday afternoon, EST, include MYX Finance, Memecore, River, Jupiter, Morpho, and Hyperliquid. 

The stock market showed modest gains: Major large-cap indices like the S&P 500 and Nasdaq 100 were up 0.7% and 1.1%, respectively. The iShares Russell 2000 ETF led market gains with a 1.32% rally by midday.

Crude oil prices, meanwhile, plunged as the U.S. military assembles in the Gulf.

Brent, the global benchmark, dropped by 4.75% to $66, while the West Texas Intermediate plunged to $61. At the same time, gold, often seen as a safe-haven asset, retreated to $4,600 from the all-time high of $5,568. 

More data from Polymarket shows that the odds of the U.S. striking Iran have continued falling. Odds of strikes happening by the end of the year moved from 80% to6 69%.

The crypto crash also stalled as the Fear and Greed Index slumped to 14, its lowest level this year. In most cases, crypto rebounds occur when the index moves into the extreme fear zone.

Bitcoin price technicals suggest the rally could be a bull trap

The weekly chart shows that the BTC price has crashed in the past few months.

It has already flipped the Supertrend indicator from green to red. The last time this happened was in 2021, and the coin tumbled by over 70% after that.

Bitcoin has moved below the 38.2% Fibonacci Retracement level and the 50-week Exponential Moving Average. The Relative Strength Index and the Stochastic Oscillator continued falling. 

Therefore, these technical indicators suggest that the Bitcoin price may continue to fall in the near term. If this happens, it may continue falling, potentially to the 50% retracement level at $70,000. As such, there is a risk that the crypto crash will continue falling in the coming weeks. 

This view aligns with Michael Novogratz’s recent prediction when he noted that a full Bitcoin recovery will be confirmed when it moves above $100,000 and $103,000.