Experts Sees Bitcoin Price Drop as a Golden Entry Point Before Rally 2.0

Bitcoin price traded below $100,000 on January 27, just 8% below its record high of $108,796 set seven days prior, according to CoinGecko data. While there is a short-term price rebound as of the time of writing, BTC price action has not aimed for higher levels yet.

The rebound followed a volatile 24-hour period where the cryptocurrency briefly plunged to $97,791 amid a broader market selloff triggered by a collapse in tech stocks.

While $888 million in crypto positions were liquidated during the drop, analysts like Bitwise Chief Investment Officer Matt Hougan argue the correction could be a strategic buying opportunity.

BTC vs. Traditional Hedges: A Decade of Data Reveals a Pattern

Hougan’s analysis hinges on a decade of market behavior. He noted that when the S&P 500 (SPX) drops 2% or more in a day, Bitcoin price has historically fallen 2.62% on average, while gold gains 0.11%.

But the long-term story diverges sharply: one year after such dips, Bitcoin surged 189% on average, compared to gold’s 7%. “Gold is a better one-day hedge, but Bitcoin dominates over time,” Hougan said.

The numbers align with Bitcoin’s current trajectory. Despite shedding 8% from its peak, the cryptocurrency recovered to $100,000 within hours, outperforming traditional assets. The S&P 500 fell 1.6% on July 27, while the Nasdaq 100—a $27 trillion index—dropped 2.3% amid a $500 billion wipeout for chipmaker Nvidia.

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Placeholder VC partner Chris Burniske highlighted Bitcoin’s resilience relative to tech stocks. “BTC down less than NASDAQ too,” he said on January 27.  The divergence underscores Bitcoin’s growing role as a risk-off alternative, even as critics label it volatile.

The selloff was partly triggered by Chinese AI firm DeepSeek’s release of a powerful and efficient new model, spooking investors about U.S. tech competitiveness.

Nvidia shares plunged 17%—their steepest drop since March 2020—erasing $500 billion from its market cap. Bitcoin, however, shrugged off the panic, buoyed by steady ETF inflows and institutional demand.

Why Analysts See $100,000 Bitcoin Price as a Critical Support Level

For now, Bitcoin’s $100,000 foothold and proximity to record highs keep bulls optimistic. Bitcoin has bounced back strongly following a recent market dip. This rapid recovery has revived discussions about a potential price surge, with analysts eyeing a climb toward the $150,000 level in the coming months.

Bitcoin briefly dropped below the $100,000 mark, hitting an intraday low of $97,750. However, by January 28, BTC had rebounded to over $103,000, gaining 5.75% from its recent low.

Observers have pointed to a bull pennant pattern on Bitcoin’s price chart, signaling continued upward momentum.

One independent analyst on X highlighted that Bitcoin’s bullish trajectory remains intact despite its temporary dip. “Even a close as low as $96,000 would still support a bullish outlook,” the analyst stated, projecting a potential move above $150,000 in the weeks ahead.