Is Bitcoin Heading for a $90K Correction?
Bitcoin’s recent price swings have left investors in a state of uncertainty, as the cryptocurrency has fallen sharply from a peak of nearly $107,000 to around $94,550. The volatility raises fundamental questions about Bitcoin’s ability to sustain its rally and whether it can regain its footing in the coming weeks.
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Critical support levels are threatened
Crypto quantization analyst Shayan had an important speech about the current state of Bitcoin. According to him, the price is trying to stabilize above the $92,000 level, which he further stated is a key support.
He noted that Bitcoin is stabilizing near $92,000, which he considers a key support area. If Bitcoin falls below this level, it could trigger a wave of long liquidation and push the price towards the 100-day moving average at $81,000. Furthermore, the line has been acting as a real dynamic support by attracting buying inflows and could also cushion the price during further declines.
Shayan emphasized the role of market sentiment and technical indicators. Currently, Bitcoin is trading at the important support level of $90,000 and the Fibonacci retracement levels of $87,000 and $82,000. If the above levels do not hold, further selling pressure and correction may occur.
Bitcoin outlook remains bullish despite bearish concerns
Amid this uncertainty, prominent cryptocurrency analyst Crypto Rover expressed a bullish outlook for Bitcoin. He recently compared today’s price action to historical patterns, suggesting that Bitcoin may see a positive trend in January.
#bitcoin History is repeating itself.
January will turn green.
You will regret not buying more here. pic.twitter.com/DCssLNMGh6
— Crypto Rover (@rovercrc) January 8, 2025
“Bitcoin history is repeating itself. January will turn green. You will regret not buying more here.” His analysis suggests that if Bitcoin can break through the key resistance level of $100,000, it may It will break through $107,000.
massive capital inflow
Massive capital inflows boost Rover’s incentives Bitcoin ETFattracting more than $900 million in capital inflows from institutions BlackRock and Fidelity. Increased institutional interest also signals confidence in Bitcoin’s long-term prospects. However, he also warned that a failure to close above the $100,000 mark would cause the price to fall back to $92,000 or even lower.
The broader cryptocurrency market is also feeling the pinch. This decline coincides with Bitcoin’s failure to remain viable as well as other cryptocurrencies such as Ethereum and Solana The decline has exceeded 7%.
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Even traditional stocks in the crypto space such as MicroStrategy and Coinbase have fallen sharply. Falling funding rates in derivatives markets have added to the bearish sentiment surrounding Bitcoin. Shayan said the decline in funding rates reflected lower demand for derivatives, which also played a key role in sustaining price trends.
Featured image from Pixabay, chart from TradingView
