The Telegraph
An analyst suggests that Bitcoin could potentially decline to $88,000 if it fails to maintain the crucial support level at $95,000.
Bitcoin (BTC) experienced a 6% drop in the last 24 hours, falling below $96K as a spot sell-off, fueled by macroeconomic concerns, pushed BTC’s price to a “critical” point, leading to an 8.4% decrease in the overall cryptocurrency market.
According to analyst Skew, following Bitcoin’s recent downturn, a decline to $95K—just $300 away at the time of writing—could result in BTC retesting levels as low as $88K.
“Around 1D lows ($92K – $88K), bid liquidity has seen a substantial increase in demand,” the analyst pointed out, emphasizing that spot flow will play a vital role for the remainder of the week.
A related chart illustrating liquidity blocks lower in the Binance order book suggests robust buyer interest around the $88,000 level.
Skew’s projection may become reality as selling pressure on Binance, one of the largest cryptocurrency exchanges by trading volume, has risen. According to analysts at CryptoQuant, Binance’s hourly Net Taker Volume plummeted to a yearly low of -$325 million on Jan. 8, coinciding with the release of ISM PMI and JOLTs Job Openings data, which indicated unfavorable conditions for risk assets like Bitcoin.
Other experts, including trader Johnny, also forewarned of a possible dip into that range in the upcoming weeks.
Meanwhile, as noted by pseudonymous analyst Rekt Capital, Bitcoin has entered the $91,000–$101,165 range after failing to maintain the critical daily support level at $101,165. This could lead BTC to fluctuate within this range short term, with $91,000 serving as the next significant support level.
Bearish predictions for BTC emerged as institutional demand seems to be waning, demonstrated by a considerable drop in inflows on Jan. 7, which fell to $52.9 million—a nearly 94% decline from the almost $1 billion recorded just a day prior.
Despite these bearish forecasts, on-chain data presents a contrasting perspective.
Data from IntoTheBlock indicates that net flows from exchanges rose from a withdrawal of 346.47 BTC on Jan. 6 to 1.85K BTC on Tuesday, Jan. 7. This surge in withdrawals suggests that investors are shifting their holdings from exchanges to personal wallets, likely striving to hold them for an extended period and thereby reducing selling pressure.
On the 1-day BTC/USDT chart, the Chaikin Money Flow index remains positive at 0.09. This indicator suggests ongoing buying pressure and a healthy inflow of capital into Bitcoin, potentially supporting an upward movement.
Alongside this, CryptoQuant CEO Ki Young Ju highlighted that the Apparent Demand for Bitcoin “remains very high.”
The Apparent Demand metric evaluates Bitcoin’s demand by comparing the number of newly mined coins with those held for over a year. A high reading indicates strong investor confidence in the asset’s future potential.
