NAIROBI (CoinChapter.com)—Bitcoin’s (BTC) price continues its downward slide, trading at $94,903.53 as of Jan. 8, marking a 5.86% decline in the past 24 hours. The cryptocurrency’s market cap has dropped to $1.88 trillion, down 5.79%, with 24-hour trading volume reflecting the heightened activity.
Bitcoin struggles near $95,000 amid liquidation wave
BTC/USD slipped to $95,200 on Jan. 8, marking a 5.27% decline. Data from Coinglass revealed that the market saw $694.11 million in total liquidations over the past 24 hours, with Bitcoin alone contributing $125 million. These losses stemmed from a sell-off triggered by unfavorable U.S. economic data, including ISM PMI and JOLTs Job Openings.
Bitcoin Net Taker Volume (Hourly) Binance chart. Source: CryptoQuant
CryptoQuant’s Net Taker Volume for Bitcoin on Binance turned sharply negative, reaching a peak of -$325 million. This signaled heightened selling pressure, according to contributor Darkfost. Traders like Skew highlighted $95,000 as a critical level to monitor, warning of further declines if buyers fail to regain momentum.
Bearish sentiment grows as institutional inflows slow
Coinglass data shows Bitcoin’s long-to-short ratio has dropped to 0.89, reflecting a bearish market sentiment. Institutional demand for Bitcoin also appears to be waning. Spot ETF inflows recorded $52.4 million on Jan. 7, down significantly from $978.6 million the previous day. Analysts warn that reduced inflows could exacerbate selling pressure.
BTC/USD 1-day price chart. Source: TradingView
Additionally, technical indicators point to continued bearish momentum. Bitcoin’s daily Relative Strength Index (RSI) dipped to 47, below its neutral threshold of 50. The 38.2% Fibonacci retracement level at $92,493 now serves as a key support zone, with a breach potentially opening the door for a retest of $88,000.
Outlook remains cautious amid “Trump Dump” fears
Market participants like Johnny anticipate heightened volatility as the Jan. 20 inauguration of U.S. President-elect Donald Trump approaches.
Analyst Rager highlights BTC’s bounce potential. Source: Ranger
Analysts foresee potential downward moves to $88,000 in the near term. Despite the bearish outlook, traders like Josh Rager suggest a possible rebound by the weekend if BTC holds current support levels.
However, with spot flow and macroeconomic factors playing a pivotal role, Bitcoin remains vulnerable to further downside. The coming days will determine whether bulls can reclaim lost ground or if sellers will continue to dominate.
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