Bitcoin is likely to fall to $88,000 if it fails to hold the key support level at $95,000, according to an analyst.
Bitcoin (Bitcoin) by 6% over the past day, falling below $96,000 as a result of paid spot sales. Macroeconomic concerns Bitcoin's price action pushed it to a "pivot" level, contributing to an 8.4% decline in the global cryptocurrency market.
According to analyst Skew, after Bitcoin's recent decline, a further decline to $95,000 — just $300 away at press time — could see Bitcoin retest levels as low as $88,000.
“Near one-day lows ($92K-$88K), bidding liquidity was buffered with a significant increase in demand,” the analyst said. maleAdding that instant streaming will also play a vital role for the rest of this week.
The related chart showed liquidity blocks positioned low on Binance's order book, indicating strong interest from buyers near the $88,000 mark.
The Skew scenario could occur as there is a slight increase in selling pressure on Binance, which is one of the largest cryptocurrency exchanges by trading volume. According to For CryptoQuant analysts, Binance's hourly net taker volume turned sharply negative on January 8, hitting a yearly low of -$325 million during the release of the ISM PMI and JOLT job openings data, which signal unfavorable conditions for risk assets like Bitcoin. .
Among other experts, fellow trader Johnny also predicted a possible decline in that area in the coming weeks.
Meanwhile, According to According to pseudonym analyst Rekt Capital, Bitcoin entered the $91,000-$101,165 range after failing to maintain the critical daily support level at $101,165. This could see Bitcoin fluctuate within this range in the short term, where the next major support level would be $91,000.
The bearish outlook for Bitcoin emerged with weak institutional demand, as evidenced by the significant decline in inflows on January 7, which reached at $52.9 million- Approximately 94% less than approximately $1 billion registered Just one day ago.
Despite the bearish speculation, on-chain data tells a different story.
According to data from IntoTheBlock, net inflows from exchanges increased from a withdrawal of 346.47 BTC on January 6 to 1.85 thousand BTC on Tuesday, January 7. This increase in withdrawals indicates that investors are moving their holdings from exchanges to their personal wallets. They will likely intend to hold them for longer periods, thus reducing selling pressure.
On the 1-day BTC/USDT chart, the Chaikin Money Flow indicator remains positive at 0.09. The indicator indicates continued buying pressure and a healthy inflow of capital into Bitcoin, which could support a potential upward move.
Another bull case for Bitcoin was made by CryptoQuant CEO, Ki Young Ju, who male The apparent demand for Bitcoin is “still very high.”
The Virtual Demand Index measures the demand for Bitcoin by comparing the number of coins recently mined with the number of coins that have been held for more than a year. A high reading on it means that investors are confident in the future potential of the asset.
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