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Bitcoin Price Analysis: Is BTC Doomed to Fall to $80K After 9% Correction?
Author: CryptoVizArt
Last Updated Jan 9, 2025 @ 12:59
The recent downturn in Bitcoin’s price has raised concerns among investors. A drop of over 9% has sparked speculation about the cryptocurrency’s potential trajectory.
Technical Analysis
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The daily chart shows that the market failed to hold above $100K, as the next day’s candle erased all gains and closed back below this significant level. This development has led to a decline towards the $91K support area, which could be broken further, causing a potential drop toward the $85K mark or even the $80K support zone.
Further analysis of the 4-hour chart reveals that Bitcoin has been consolidating between $92K and $100K for some time now. The asset briefly broke above this resistance level twice but struggled to maintain momentum. Currently, it is likely to retest the $92K support area once more before determining the short-term market trend.
The RSI also suggests a bearish momentum as its values remain below 50%. This indicates that the market may continue to fall further.
On-Chain Analysis
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Bitcoin’s on-chain metrics are also painting a concerning picture. Despite recent price growth, miners have been selling their coins in bulk, leading to a significant decline in exchange reserves. It is likely that this profit realization will result in additional selling pressure and further hinder the asset’s potential for growth.
The data suggests that these bearish sentiments could be exacerbated by the current downtrend, ultimately leading to a drop below $80K.
What do you think?
Source: cryptopotato.com
