Bitcoin (BTC) is currently testing a vital technical threshold after experiencing a drop from recent highs. As of now, Bitcoin trades just below $93,000, reflecting a 2% loss over the last 24 hours. However, it has managed to remain up about 3% over the past week.

After failing to sustain a price above the $95,000 mark, it fell by $3,000 in a matter of hours, leading it directly under the crucial 50-week moving average, which has historically acted as support.

Weekly Support Under Strain

The 50-week moving average has been a pivotal base for multiple recoveries in the last year. Bitcoin’s approach to this level from below raises significant questions regarding its resilience. Analyst Merlijn The Trader characterized this juncture as a make-or-break moment. He stated, “Reclaim and hold MA50. Continuation higher,” indicating a potential bullish outlook, while cautioning that failure to hold could mean more downside ahead.

BTC weekly: make-or-break moment.
Bitcoin is retesting the 50-week moving average. This level has acted as support multiple times in this cycle.
Bull case:
Reclaim and hold MA50. Continuation higher.
Bear case:
Rejection at MA50. More downside.
pic.twitter.com/iOgG64tHzH
– Merlijn The Trader (@MerlijnTrader) January 19, 2026

Currently, the rejection observed in the $95,000 region suggests a cautious market sentiment. A surge above the moving average could help reinvigorate momentum; without it, sellers may dominate.

Despite recent short-term weaknesses, Bitcoin still trades above its 21-day moving average, indicating that the trend of higher lows remains somewhat intact. Analyst Michaël van de Poppe highlighted concerns surrounding macroeconomic news but remains confident that the prevailing trend is unbroken.

“A lot of people are afraid… I don’t think you should,” he expressed on X.

Support is forming near the $90,000 level, which may dictate the forthcoming movement. Meanwhile, resistance remains between $100,000 and $105,700. Absent a decisive breakthrough with significant volume, upward movements are likely to remain constrained.

BTC Price Responses to Global Developments

The recent downturn correlates with new trade tariffs introduced from the US, which the markets reacted to at the commencement of the futures session. Analyst Daan Crypto Trades noted,

“BTC moved straight down from the futures open when TradFi got a chance to react.”

Pointing to the 4-hour 200 EMA as short-term support, this drop exemplifies the current close tracking between crypto markets and significant global events. With prevailing uncertainties, traders may be more inclined to observe US equity responses in the upcoming sessions.

Nevertheless, some analysts are identifying positive underlying trends. Long-term holders seem to be reducing their selling activity.

“They’re clearly not selling like this is the top,” stated on-chain observer Crypto Tice.

Data from CryptoQuant’s COINDREAM indicates that the recent price rebound was primarily led by spot market buying rather than leverage trading. This trend signifies a transition from leverage-dominant actions to demand-driven purchases, suggesting early accumulation instead of a transient rally.