Bitcoin has fallen by 6% and is below $96,000 within the last 24 hours. Macroeconomic worries, coupled with some selloffs, brought the global cryptocurrency market capitalization down by 8.4%. Optimists now refer to the Bitcoin price level as the ‘crucial’ or ‘Kesel’ figure.
According to Skew, a breakdown below the $95K support, which was only $300 away at the time of writing this report, could open the doors for a retesting of the $88K support level.
$BTC Binance Spot
Update:
Right around 1D lows ($92K – 88K), bid liquidity has been buffered up a decent amount with increased demandSpot flow is going to be vital the rest of this week & $95K will be pivotal https://t.co/kKS0BJKDU5 pic.twitter.com/tgjGZGfMJi
— Skew Δ (@52kskew) January 8, 2025
‘When analyzing liquidity data Skew has stated that buyer demand at the current price range is significant and consolidated between $95K and $88K,’ On the Binance order book. “Bid liquidity has been buffered with a large amount of demand added to the equation, although spot flow will be put in focus this week,” Skew explained.
As for the sustainment of this bearish thesis, the CryptoQuant data showed that Binance’s Net Taker Volume went to a negative deep value of $325M on January 8, 2022, a yearly low. This decline occurred concurrently with the release of poor US economic data in the form of ISM PMI and JOLTs Job Openings, denting demand risk among investors.
Bitcoin’s Range Narrows, Traders Eye $91K Support Zone
A trader Johnny forecasted the upcoming Bitcoin low at $94K and $98K, while Rekt Capital noted that BTC is now in the $91,000 – $101,165 area. Bitcoin failed to stay above the daily support of $101,165, meaning that, as it stands now, the crypto asset may be on its way back to test $91,000, in the view of Rekt Capital.
Also, there is a clear sign that institutional demand is also coming down. Based on the calculations from the 7th of January, most of the investors’ inflows had depreciated to about $52.9 million from $999.9 million, petrifying the shrinkage of trader enthusiasm.
However, certain indicators don’t match with the platform’s bearish outlook. According to the data from IntoTheBlock also showed growing Bitcoin net outflows from exchanges, rising from 346.47 BTC on January 6 to 1.85K BTC on January 7. These withdrawals indicate more investors are taking their coins to personal wallets, meaning a long-term bullish view without the need for liquidation in the short term.
I think a move like this over the next 2-3 weeks going into the inauguration is highly probable pic.twitter.com/cUVnbzDOXq
— Johnny (@CryptoGodJohn) January 8, 2025
Supporting this view the CMF index on the 1-day BTC/USDT chart remained positive at 0.09 indicating continuous accumulation hell; even short term. Ki Young Ju, the CEO of CryptoQuant, also pointed out that the Apparent Demand for BTC has not deteriorated at all. “The level of the Apparent Demand remains in the stage that reflects the belief in long-term prospects of Bitcoin”, he emphasized.
As of the time of reporting, Bitcoin is trading near $95K, and everyone is waiting for a further breakdown of this critical support area. A breakdown below this level may lead to a retest of $88K once again. However, consistent demand and supportive on-chain observations shed some light at the end of this tunnel. Some technical and on-chain indicators are bullish, and a few are bearish, so the next few days may decide Bitcoin’s journey.
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