Bitcoin Price Faces Resistance at $98,000: Investment Analysts' Cautious Reminder

In the current volatile environment of the cryptocurrency market, professional investment institutions have issued clear guidance on the timing of Bitcoin purchases. According to the latest data, BTC is currently priced at $83.09K (as of January 30, 2026), showing a significant pullback from previous highs. Recently, Compass Point investment bank stated that investors should exercise extra caution when considering contrarian positions, implying deep technical considerations behind this warning.

$98,000: Cost Basis for Short-Term Holders

Data analysis platform NS3.AI’s research indicates that the $98,000 level has special significance—it represents the average purchase cost for short-term traders. This critical level was once an important support during Bitcoin’s upward movement. When the price was near $97,500, market participants had high hopes of holding this level. However, subsequent decline below $90,000 suggests that bearish forces have been confirmed, and the depth of the breakdown reflects the overall selling pressure.

Current Price and Technical Pattern Interpretation

After Bitcoin fell to $83.09K, it reached a deeper support zone. While further decline into the $80,000 range could theoretically present better buying opportunities, investment banks remain cautious. This is not only due to technical uncertainties but also risk management considerations.

Hidden Risks of Borrowed Funds for Purchasing

Compass Point emphasizes a commonly overlooked issue by retail investors: the systemic risks associated with using leverage or borrowing to buy. When prices have not yet stabilized clearly and key resistance levels like $98,000 remain unbroken, leveraged positions are highly vulnerable to forced liquidation during further pullbacks. Even at what seems like a “low” of $80,000, if the technical outlook remains unclear, caution is still advised to weigh the risk-reward ratio.

Investment Decision Recommendations

Overall, before Bitcoin stabilizes above $98,000, there remains structural risk. Investors should adopt a phased approach to entry and control risk exposure, especially avoiding excessive leverage when prices are unstable. The market’s ultimate bottom confirmation requires time to verify; rushing is not advisable.