Bitcoin Price Could Tumble to $88,000 if Key Support Level Fails to Hold

Following a 6% decline in the past day, Bitcoin (BTC) prices have fallen below $96,000 due to macroeconomic concerns, which have pushed the global crypto market down by 8.4%. According to analyst Skew, if Bitcoin fails to hold the key support level at $95,000, it could potentially drop to $88,000.

Skew noted that around the 1D lows ($92,000 – $88,000), bid liquidity has been buffered with a significant increase in demand. Additionally, spot flow will play a vital role for the rest of this week. A related chart showed liquidity blocks positioned lower in the Binance order book, signaling strong buyer interest near the $88,000 mark.

Pressure Builds Amid Institutional Demand Weakness

Skew’s scenario could play out as there has been an uptick in selling pressure on Binance, one of the largest cryptocurrency exchanges by trading volume. According to CryptoQuant analysts, Binance’s hourly Net Taker Volume turned sharply negative on Jan. 8, hitting a yearly low of -$325 million during the release of the ISM PMI and JOLTs Job Openings data.

Other experts, including fellow trader Johnny, also anticipate a potential dip into the $88,000 zone in the coming weeks.

$BTC I think a move like this over the next 2-3 weeks going into the inauguration is highly probable

BTC Price Oscillating Within the $91,000-$101,165 Range

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 oscillate within this range in the short term, with $91,000 acting as the next key support level.

On-Chain Data Tells a Different Story

Despite the bearish predictions for BTC, on-chain data suggests otherwise. According to data from IntoTheBlock, net flows from exchanges surged from a withdrawal of 346.47 BTC on Jan. 6 to 1.85K BTC on Tuesday, Jan. 7. This increase in withdrawals suggests that investors are moving their holdings from exchanges to personal wallets, likely intending to hold them for longer periods, thereby reducing sell-off pressure.

Additionally, the Chaikin Money Flow index remains positive at 0.09 on the 1-day BTC/USDT chart, indicating sustained buying pressure and a healthy inflow of capital into Bitcoin.

Tips for Investors:

  • Monitor the key support level at $95,000 and be prepared for potential price fluctuations.
  • Keep an eye on institutional demand and its impact on the market.
  • Consider on-chain data and its implications for the asset’s future potential.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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