"Bitcoin Plunges $864M in Liquidations as DeepSeek AI Sparks Competition Fears"

Bitcoin and the broader cryptocurrency market have been grappling with significant selling pressure in recent days, with the launch of the DeepSeek AI app sparking fears of increased competition and triggering a wave of liquidations. As the market reacts, over $864 million has been lost to liquidations, revealing trader anxiety amid increasing competition in technology.

Bitcoin's price has seen significant fluctuations, falling below the $98,000 mark on January 27 before rebounding near the $100,000 threshold. The market response can largely be attributed to the introduction of the DeepSeek AI app, which triggered uncertainties about potential competition affecting various asset classes. This led to substantial market liquidations totaling $864 million within a single day.

The sharp corrections witnessed across Bitcoin and other cryptocurrencies illustrate a classic risk-off mentality among traders. As market participants reduced exposure amid fears of increasing competition in artificial intelligence, several investment positions were rapidly liquidated. This highlights how interlinked traditional asset market dynamics are with the behavior observed in cryptocurrencies, despite the inherent differences in technology.

Bitcoin, trading around $99,000 during the aftermath of the market's reaction, faces a crucial test to sustain levels above the 50-day simple moving average (SMA). A close examination of the price dynamics reveals that while the bulls are attempting to protect this threshold, dropping below it could unleash a wave of selling pressure, pushing Bitcoin to its immediate support levels between $90,000 and $85,000.

Traders are now looking ahead to the Federal Open Market Committee meeting to gauge future monetary policy moves. If indicators suggest a continuation of the current stance, it may provide the necessary catalyst for Bitcoin to embark on a bullish trajectory once more. Conversely, failure to uphold key support levels could lead to amplified bearish sentiment across altcoins.

Ethereum's Ether (ETH) dropped beneath the neckline of a head-and-shoulders pattern, marking a significant bearish development. The crucial support at $2,850 is now in focus, with analysts indicating it could be a pivotal point. If breached, further declines to around $2,400 may ensue, indicating heightened market corrections.

Ripple (XRP) has seen a recent decline below the