Predicted Bitcoin correction finds strong support around $90k

As Bitcoin and the major altcoins had a fantastic second half of 2024 without any major pullbacks (and it has actually been about 12 months since we saw a correction), it is not too surprising that yesterday we saw a selloff in crypto markets.

The reason for this sudden drop appears to be a rumor that the Federal Reserve could raise interest rates in 2025 instead of lowering them.

4 January

The clearest warning I gave for a January pullback was posted on January 4. In it I explained that the historical Bitcoin pattern showed that a January pullback usually follows the year after the halving.

The 2016 halving was followed by a 30% pullback in January 2017, the 2020 halving was followed by the same pullback of around 30% in January 2021. Last year the halving took place in April.

Let’s grab liquidity beneath the lows.

The final flush for #Bitcoin before Trump initiate the bull market. pic.twitter.com/sqqhMqmFt7

— Michaël van de Poppe (@CryptoMichNL) January 13, 2025

Support line

Bitcoin gained more than 100% in 2024, having already dropped 15% once since its peak of $107,000 in early December. Normally support would be found around $82-$84k. I expected Whales to pick up Bitcoin at that level. Yesterday we saw a bounce at $90k already. At the time of writing, Bitcoin is trading for $94,900.

Among altcoins, it seems to me that XRP is getting really interesting, as it bounces on support, even though the price trend of the ripple Labs coin depends mainly on what is decided in court tomorrow.

The global stock markets also lost ground yesterday due to a message from Bank of America, which expects the Fed to raise interest rates again in 2025. Goldman Sachs has also lowered its expectations for the Fed.