DailySun
An analyst has suggested that Bitcoin may plunge to $88,000 if it can’t maintain its crucial support level at $95,000.
Bitcoin (BTC) has seen a 6% decline in the past 24 hours, dipping below $96K as a spot sell-off, triggered by macroeconomic issues, has driven BTC price action into a “critical” zone. This has led to an 8.4% drop in the overall cryptocurrency market.
According to the analyst Skew, following Bitcoin’s latest decline, a further fall to $95K—only $300 away at the time of writing—could potentially see BTC testing levels as low as $88K.
“In the vicinity of 1D lows ($92K – $88K), buyer liquidity has increased significantly, indicating strong demand,” the analyst mentioned, emphasizing that spot flow will be crucial throughout the rest of this week.
A related chart indicated liquidity blocks positioned lower in the Binance order book, which reflects substantial buyer interest near the $88,000 level.
Skew’s prediction could materialize as Binance, one of the largest cryptocurrency exchanges in terms of trading volume, has experienced heightened selling pressure. According to analysts at CryptoQuant, Binance’s hourly Net Taker Volume saw a drastic negative shift on Jan. 8, plummeting to a yearly low of -$325 million coinciding with the release of ISM PMI and JOLTs Job Openings data, signaling unfavorable conditions for risk assets such as Bitcoin.
Other analysts, like trader Johnny, have also predicted a potential drop into that range in the upcoming weeks.
Meanwhile, according to the analyst known as Rekt Capital, Bitcoin has entered the $91,000–$101,165 range after it was unable to maintain the critical daily support level at $101,165. This situation could lead BTC to fluctuate within this range in the near term, with $91,000 serving as the next significant support level.
These bearish forecasts for BTC have emerged amid signs of weakening institutional demand, highlighted by a dramatic decrease in inflows on Jan. 7, which dropped to $52.9 million—about 94% lower than the nearly $1 billion recorded just a day prior.
Despite these bearish indications, on-chain metrics present a different perspective.
Data from IntoTheBlock shows that net flows from exchanges surged from a withdrawal of 346.47 BTC on Jan. 6 to 1.85K BTC on Tuesday, Jan. 7. This significant increase in withdrawals indicates that investors are transferring their assets from exchanges to personal wallets, likely aiming to hold them for extended periods, which reduces the sell-off pressure.
On the 1-day BTC/USDT chart, the Chaikin Money Flow index remains positive at 0.09, indicating sustained buying pressure and healthy inflow of capital into Bitcoin, which could underpin a potential price increase.
Another bullish argument for Bitcoin was made by CryptoQuant CEO Ki Young Ju, who observed that the Apparent Demand for Bitcoin “remains very high.”
The Apparent Demand indicator assesses Bitcoin’s demand by comparing the quantity of newly mined coins to the number of coins held for over a year. A high reading indicates that investors are optimistic about the asset’s future potential.
