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Bitcoin’s recent price volatility has left investors in a state of uncertainty, as the cryptocurrency has seen a dramatic drop from its highs of nearly $107,000 to around $94,550. This volatility raises important questions about Bitcoin’s ability to sustain its rally and whether it can regain momentum in the coming weeks.
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Critical Support Levels Under Threat
CryptoQuant analyst Shayan had something important to say about the current situation in Bitcoins. According to him, the price is trying to stabilize above the $92,000 level, which he also says is an important support.
He notes that Bitcoin is settling near the $92,000 mark, which he describes as an important area of ​​support. If Bitcoin breaks below this level, it could trigger a wave of long-term selling and push prices down to the 100-day moving average of $81,000. Also, this line has been acting as a real dynamic support by attracting incoming purchases and can reduce prices during further declines.
Shayan emphasizes the role of market sentiment and technical indicators. Currently, Bitcoin is swinging through key support levels created at the $90K level and Fibonacci retracement levels at $87K and $82K. If the levels mentioned above do not hold, there may be more selling pressure through corrections.
Bitcoin Bullish Outlook Despite Bearish Fears
Amid this uncertainty, well-known cryptocurrency analyst Crypto Rover expressed a positive outlook for Bitcoin. He recently compared today’s price action to historical patterns, suggesting that January could see positive trends for Bitcoin.
#Bitcoin history repeats itself exactly.
January will turn green.
You will regret not buying more here. pic.twitter.com/DCssLNMGh6
– Crypto Rover (@rovercrc) January 8, 2025
In a tweet, he said, “Bitcoin history is repeating itself. January will turn green. You will regret not buying more here.” His analysis shows that if Bitcoin breaks through the critical resistance level of $100,000, it may barrel past $107,000.
Big Income
Rover’s positivity is bolstered by the massive inflow of Bitcoin ETFs, which have attracted more than $900 million in inflows from institutions such as BlackRock and Fidelity. The increase in institutional interest also reflects confidence in Bitcoin’s long-term prospects. However, he also warns that failure to close above the $100,000 mark will result in a pullback to $92,000 or less.
The broader cryptocurrency market is also feeling the pinch. The decline comes alongside Bitcoin’s failure to stay viable, with other cryptocurrencies such as Ether and Solana down more than 7%.
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Even traditional stocks of the crypto sector, such as MicroStrategy and Coinbase, have fallen significantly. Funding rates falling within the derivatives market add another layer of bearish sentiments surrounding Bitcoin. According to Shayan, the drop in subsidy rates indicated the need to divest derivatives, which also played an important role in maintaining price trends.
Featured image from Pixabay, chart from TradingView