An analyst suggests that Bitcoin may fall to $88,000 if it cannot maintain the crucial support level at $95,000.
Bitcoin (BTC) experienced a 6% decline in the last 24 hours, dropping below $96,000 as a spot sell-off triggered by macroeconomic concerns pushed BTC’s price to a “critical” threshold, contributing to an 8.4% drop in the overall cryptocurrency market.
Analyst Skew noted that following Bitcoin’s recent decrease, a potential slide to $95,000—just $300 away at the time of writing—could prompt BTC to revisit levels as low as $88,000.
“Near the daily lows ($92,000 – $88,000), bid liquidity has strengthened significantly due to increased demand,” the analyst observed, emphasizing that spot flow will be crucial as the week progresses.
A corresponding chart indicated liquidity blocks positioned lower in the Binance order book, suggesting strong buyer interest close to the $88,000 level.
Skew’s forecast aligns with the recent 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 dramatically dropped on Jan. 8, reaching a yearly low of -$325 million coinciding with the ISM PMI and JOLTs Job Openings report, signaling adverse conditions for risk assets like Bitcoin.
Other analysts, including trader Johnny, have also forecasted a potential dip into that range in the upcoming weeks.
Meanwhile, pseudonymous analyst Rekt Capital pointed out that Bitcoin has entered the $91,000–$101,165 range after failing to maintain the essential daily support level of $101,165. This situation may result in BTC fluctuating within this range temporarily, with $91,000 emerging as the next significant support level.
The negative outlook for BTC coincides with a downturn in institutional demand, as evidenced by a marked decline in inflows on Jan. 7, which reached $52.9 million—nearly 94% lower than the nearly $1 billion reported just one day prior.
Despite the bearish forecasts, on-chain data presents a different narrative.
Data from IntoTheBlock shows that net flows from exchanges increased from a withdrawal of 346.47 BTC on Jan. 6 to 1.85K BTC on Tuesday, Jan. 7. This rise in withdrawals indicates that investors are moving their assets from exchanges to personal wallets, likely with the intent to hold them longer, thereby easing sell-off pressure.
On the one-day BTC/USDT chart, the Chaikin Money Flow index remains positive at 0.09. This indicator suggests a sustained buying interest and a healthy influx of capital into Bitcoin, potentially supporting a move upward.
A different optimistic perspective on Bitcoin comes from CryptoQuant CEO Ki Young Ju, who pointed out that the Apparent Demand for Bitcoin “remains very high.”
The Apparent Demand indicator assesses Bitcoin’s demand by comparing newly mined coins with those held for more than a year. A high reading indicates that investors are confident about the asset’s future prospects.
