Bitcoin could drop down to $88,000 if it doesn't hold the key support level at $95k, according to an analyst.
Bitcoin (BTC) down 6% over the past day, falling below $96K as a spot led by macroeconomic concerns it pushed BTC's price action to a “significant” level, contributing to an 8.4% decline in the global crypto market.
According to analyst Skew, after Bitcoin's recent collapse, another drop to $95K – just $300 away at press time – could force BTC to retest levels as low as $88K.
“Just around the 1D lows ($92K – $88K), bid liquidity has been offset by a significant increase in demand,” the analyst said. was notedadding that spot flow will also play a vital role for the rest of this week.
A related chart showed that liquidity blocks were located lower in Binance's order book, indicating strong buyer interest near the $88,000 mark.
Skew's position could play out as there has been an increase in selling pressure on Binance, one of the largest cryptocurrency exchanges by trading volume. according to to CryptoQuant analysts, Binance's hourly Net Taker Volume turned sharply negative on January 8, hitting an annual low of -$325 million when the ISM PMI Job Openings and JOLTs data were released, which indicated unfavorable conditions for risk assets such as Bitcoin.
Among other experts, fellow trader Johnny also predicted that it could fall into that range in the coming weeks.
At the same time, according to to renowned analyst Rekt Capital, Bitcoin has entered the $91,000 – $101,165 range after failing to hold the necessary daily support level at $101,165. This could see BTC oscillate within this range in the short term, with $91,000 acting as the next key support level.
The bearish predictions for BTC appeared as institutional demand appeared to weaken, evidenced by a sharp drop in inflows on January 7, which stood at $52.9 million– almost 94% lower than almost $1 billion recorded just a day before.
Despite the bearish speculation, on-chain data tells a different story.
According to data from IntoTheBlock, net flows from exchanges rose from a withdrawal of 346.47 BTC on January 6 to 1.85K BTC on Tuesday, January 7. apparently intending to hold them for longer periods, thus reduce sales pressure.
On the 1-day BTC/USDT chart, the Chaikin Money Flow index remains positive at 0.09. The indicator indicates sustained buying pressure and a healthy flow of capital into Bitcoin, which could support a possible upward move.
Another bullish case for Bitcoin was presented by CryptoQuant CEO Ki Young Ju, who was noted that the apparent demand for Bitcoin is “still very high.”
The Apparent Demand indicator measures Bitcoin demand by comparing the number of newly mined coins to the number of coins held for over a year. A high reading on it means that investors are confident about the fund's future potential.
