Key Support at $95,000 Under Pressure
Bitcoin has faced significant selling pressure in recent days, dropping 6% in the last 24 hours. Its price is now below $96,000, contributing to an 8.4% decline in the overall cryptocurrency market. Analyst Skew warns that if Bitcoin fails to hold critical support at $95,000, its price could drop to as low as $88,000.
Analyst Highlights Key Support Levels
According to Skew, the support zone around $92,000 to $88,000 is critical due to increased buyer interest. Liquidity in this range is substantial, suggesting it could act as a strong buffer if Bitcoin tests these levels. Binance liquidity charts also show heightened buyer activity near $88,000.
Selling Pressure on Binance
A sharp increase in selling pressure has been recorded on Binance. Data from CryptoQuant shows that Binance’s hourly Net Taker Volume hit a yearly low of -$325 million on January 8, influenced by the release of unfavorable U.S. economic data, including ISM PMI and JOLTs Job Openings reports.
Further Predictions and Current Price Range
Trader Johnny anticipates Bitcoin may drop into this key zone in the coming weeks. Pseudonymous analyst Rekt Capital highlights that BTC is currently oscillating within a range of $91,000 to $101,165, with $91,000 serving as another critical support level.
Institutional Demand Weakens, but Exchange Outflows Grow
Institutional demand for Bitcoin appears to be weakening, as evidenced by a sharp drop in inflows—from $1 billion on January 6 to just $52.9 million the following day. On the other hand, data from IntoTheBlock shows a significant increase in Bitcoin outflows from exchanges to private wallets, indicating long-term holding by investors and reduced sell pressure.
Positive Signs on the Chart
The Chaikin Money Flow index on the 1-day BTC/USDT chart remains positive at 0.09, indicating continued capital inflows and buying pressure. This supports the potential for a recovery.
Long-Term Optimism Persists
CryptoQuant CEO Ki Young Ju emphasized that the “apparent demand” for Bitcoin remains very high. This indicator measures newly mined coins against long-term holdings, with high values reflecting strong investor confidence in Bitcoin’s future growth.
Conclusion
Bitcoin faces a critical test at the $95,000 support level. If it fails, a drop to $88,000 is possible. However, data shows that buyers remain active, and some indicators suggest potential recovery. Future price movements will depend on a combination of market liquidity, economic data, and investor sentiment.
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