Bitcoin surprised the market today with a sharp price movement that could have caused fear and confusion among investors. Within an hour, there was a massive liquidation of long positions, which led to a drop in price. At the same time, long-term forecasts remain extremely divided, and Bitcoin has once again found itself at the center of emotions.
The cryptocurrency market regularly goes through phases of euphoria and panic, so the current situation fits into a known pattern for investors.
Sharp liquidation and rapid price drop
On January 21, between 5:00 PM and 6:00 PM Polish time, Bitcoin experienced one of the strongest hourly declines in recent weeks. In this short time, about 150 billion USD in capital disappeared from the market due to mass liquidation of longs. The price dropped sharply from around 90,000 USD to about 87,000–88,000 USD. This movement again showed how sensitive the market remains to excessive leverage.
Just on January 14, Bitcoin was around 98,000 USD, which built optimism among investors. The current level represents a decline of about 10,000 USD in just a few days. Many market participants viewed this movement as a brutal cleansing of speculative positions. Such events often lead to a temporary paralysis of decision-making among retail investors.
It is worth asking whether this is just a correction or the beginning of a larger downward trend. Some analysts claim that the market has not yet said its last word. Others indicate that similar liquidations often occur before a larger rebound. The answer remains open, and volatility still dominates.
Bitcoin and contradictory forecasts from analysts
On the same day, Tom Lee maintained that Bitcoin could reach 180,000 USD by January 31, 2026. This forecast contrasts with the sudden price collapse and growing uncertainty. Moreover, this same analyst increasingly changes his narrative, suggesting that he is currently 'waiting' for the situation to develop. Additionally, it is reminded that in the past, his forecasts have sometimes been inaccurate.
On the Polish analytical scene, various opinions also emerge. Phil Konieczny still believes in the cyclicality of the cryptocurrency market. According to this approach, the year 2026 should be a period of declines, but the analyst leaves room for other scenarios. He points to the possible impact of liquidity and increasing institutional involvement.
Conversely, for example, the Crypto Stasiak mentioned in our other articles announced that at the level of 97,000-98,000 USD, he plans to realize some profits. In the same analysis, he claimed that Bitcoin would have a stop at 87,000 USD, which is somewhat happening now. According to his announcements, BTC could rebound to around 89,000-92,500 USD. At the same time, he noted that a real bear market could begin after Bitcoin drops to around 74,000 USD.
According to him, further declines could reach as low as 48,000 USD, and in an extremely negative scenario, below 39,000 USD. Such forecasts reinforce investors' caution. However, no analyst or market observer has a patent on creating 100% effective forecasts, so all analyses should be approached with skepticism and not taken for granted.
What’s next for the cryptocurrency market
The current situation raises many questions, especially among beginner investors. Is Bitcoin really entering a phase of prolonged declines, or is it just temporary panic? The market shows that short-term movements often do not define the long-term trend. Therefore, risk management remains crucial.
It is worth noting the most frequently repeated risk factors:
high financial leverage in the contracts market,
emotional decisions of retail investors,
contradictory signals coming from analysts.
On the other hand, there are also more optimistic voices, mainly from abroad. Some analysts still talk about new ATH in the coming years. Tom Lee even mentions a level of 250,000 USD in 2026, although the market approaches these announcements with caution. History shows, however, that such forecasts should be treated carefully.
Does the current decline mean the end of the bull market? At the moment, there is no clear answer. The market remains in a phase of elevated volatility, and Bitcoin continues to react to liquidity and global sentiments. Therefore, the investor, especially a beginner, should maintain distance and a cool assessment of the situation.
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