Bitcoin could drop under $88k if it fails to hold $95k support: analyst

According to one analyst, Bitcoin could potentially drop to $88,000 if it fails to hold the key support level at $95,000.

Bitcoin (BTC) fell 6% in the past day, falling below $96,000 as spot selling driven by macroeconomic concerns pushed BTC price action to a “significant” level and contributed to the 8.4% decline in the global crypto market.

According to analyst Skew, following Bitcoin’s recent decline, any further decline to $95,000 (just $300 away at the time of writing) could lead to BTC potentially retesting lows as low as $88,000.

“Around the first day lows ($92K-$88K), bid liquidity has been buffered by a significant increase in demand,” the analyst said, adding that spot flow will also play a vital role for the rest of this week.

A related chart showed liquidity blocks positioned lower on the Binance order book, signaling strong buyer interest around $88,000.

Skew’s scenario may come true as selling pressure increases on Binance, one of the largest cryptocurrency exchanges in terms of transaction volume. According to CryptoQuant analysts, Binance’s hourly Net Taker Volume turned sharply negative on January 8, reaching a yearly low of -$325 million during the release of ISM PMI and JOLTs Business Openings data. This signaled adverse conditions for risky assets like Bitcoin.

Fellow trader Johnny, among other experts, also predicted a potential decline into this area in the coming weeks.

Meanwhile, according to pseudonymous analyst Rekt Capital, Bitcoin entered the range of $91,000 – $101,165 after failing to hold the critical daily support level at $101,165. This could see BTC oscillating within this range in the short term, with $91,000 acting as the next key support level.

Bearish predictions for BTC come as institutional demand weakens; this was evidenced by a significant drop in arrivals on January 7; this decrease amounted to $52.9 million; This is almost 94% lower than the nearly $1 billion recorded just a day earlier.

Despite bearish speculation, on-chain data tells a different story.

Source: IntoTheBlock

Net flow from exchanges increased from 346.47 BTC withdrawn on January 6 to 1.85 thousand BTC on Tuesday, January 7, according to IntoTheBlock data. This increase in withdrawals shows that investors are moving their assets from exchanges to personal wallets. probably plans to keep them longer and thus reduce selling pressure.

BTC price and CMF chart — January 8 | Source: crypto.news

On the 1-day BTC/USDT chart, the Chaikin Money Flow index remains positive at 0.09. The indicator points to continued buying pressure and a healthy inflow of capital into Bitcoin, which could support a potential upward move.

Another bullish scenario for Bitcoin was presented by CryptoQuant CEO Ki Young Ju, who stated that Apparent Demand for Bitcoin “remains very high.”

The Apparent Demand indicator measures Bitcoin’s demand by comparing the number of newly minted coins to the number of coins held for more than a year. A high reading on it means investors are confident in the future potential of the asset.