Bitcoin could potentially fall to $88,000 if it fails to hold the key support level at $95,000, according to an analyst.
Bitcoin (BTC) fell 6% over the day, falling below $96,000 as a sell-off driven by macroeconomic concerns pushed BTC price action to “critical” levels, contributing to an 8.4% slump in the global crypto market.
According to analyst Skew, a further decline to $95,000 following Bitcoin’s recent dip – just $300 away at the time of writing – could potentially lead to BTC retesting levels as high as $88,000.
“Around the lows of 1D ($92,000 – $88,000), bidding liquidity has been buffered by a significant increase in demand,” the analyst said. notedadding that spot flow will also play a crucial role for the rest of this week.
A related chart showed liquidity blocks positioned lower in Binance’s order book, indicating strong buyer interest around $88,000.
Skew’s scenario could occur as there is an increase in selling pressure on Binance, one of the largest cryptocurrency exchanges by trading volume. According to According to CryptoQuant analysts, Binance’s hourly Net Taker Volume turned sharply negative on January 8, hitting an annual low of -$325 million during the release of the ISM PMI and JOLTs Job Openings data, indicating unfavorable conditions for risky assets such as Bitcoin.
Fellow trader Johnny, among other experts, also expected a possible dip in that zone in the coming weeks.
In the meantime, according to According to pseudonymous analyst Rekt Capital, Bitcoin has entered the $91,000-$101,165 range after failing to hold the critical daily support level at $101,165. This could see BTC fluctuate within this range in the near term, with $91,000 acting as the next major support level.
The bearish predictions for BTC emerged as institutional demand appeared to weaken, evidenced by a significant decline in inflows on January 7, which stood at $52.9 million – down nearly 94% from the nearly $1 billion seen a day earlier registered.
Despite the bearish speculation, the data on the chain tells a different story.
According to data from IntoTheBlock, net flows from exchanges increased from a withdrawal of 346.47 BTC on January 6 to 1.85K BTC on Tuesday, January 7. Such an increase in withdrawals suggests that investors are moving their holdings from exchanges to personal wallets. likely plan to hold them for longer periods, reducing sell-off pressure.
On the 1-day BTC/USDT chart, the Chaikin Money Flow index remains positive at 0.09. The indicator points to continued buying pressure and healthy capital inflows into Bitcoin, which could support a potential upside move.
Another bullish argument for Bitcoin was presented by Ki Young Ju, CEO of CryptoQuant noted that apparent demand for Bitcoin “remains very high.”
The apparent demand indicator measures the demand for Bitcoin by comparing the number of newly mined coins to the number of coins that have been held for more than a year. A high value means that investors have confidence in the future potential of the asset.
