Bitcoin faced a major decline yesterday, testing key support below the $92,000 mark. This move has raised concerns among analysts, as the search area of $90,000 to $92,000 is seen as an important level to maintain Bitcoin’s structure. A breach below this range could indicate a deep correction, which could shake market confidence in the short term.
The bearish sentiment is compounded by growing fears that BTC may not sustain its current levels. Many traders closely monitor price action for signs of a potential reversal or further decline. The stakes are high, as this area represents a key area of Bitcoin market momentum.
Adding to the discussion, CryptoQuant’s head of research, Julio Moreno, recently shared important insights into Bitcoin on-chain metrics. According to Moreno, BTC on-chain support could be as low as $80,000, which is in line with the price levels observed by traders. This suggests that if the current search area fails, BTC may find its next support near $80,000, adding weight to the bearish view.
Bitcoin Faces Correction Risk
After yesterday’s price action, Bitcoin remains firm above key demand levels, holding firm as it tests key support. However, there is a serious risk that BTC could experience a correction in the $80K range.
The head of CryptoQuant research, Julio Moreno, shared on-chain data showing that Bitcoin price support may be around $80K, indicated by the seller’s price (represented by the pink line). This level marks the point where unrealized profit (the purple area) reaches zero, meaning there is little incentive for traders to continue trading at these levels.
While this $80K level can serve as a strong support, it may not be reached due to ongoing demand and investor sentiment. Many in the market remain bearish, expecting BTC to move higher next year as more institutional and retail investors enter the space.
On-chain data suggests that traders have locked in big profits, and the market sentiment is still dependent on the development, a sharp correction to $80K may not be possible, especially if the demand continues.
At this point, BTC is facing a critical balancing act. Any further consolidation above key support levels may strengthen the case for further price increases, but a broader market correction or sentiment shift may result in a short-term pullback. Traders and investors will closely monitor this price action to determine if Bitcoin can hold its ground above these critical levels or if a deeper correction is inevitable.
Technical Levels to Watch
Bitcoin is currently trading at $94,600, following several days of bearish price action and active selling pressure. Today marks the close of the year, and it looks like BTC is set to form a daily bullish candle.
If Bitcoin is able to close above $92,000 in the coming hours, this will show the first step of a bullish trend. A successful close above this key level would suggest that momentum buying is gaining strength, which could set the stage for a further uptrend.
However, to confirm the bullish trend, Bitcoin must return to the $100K mark. This will strengthen the upward trend and give the bulls the confidence to push even higher in the coming months. On the other hand, if BTC fails to maintain support above $92,000 and loses this level, it can cause a deep correction to the region of $80K.
Such a move would raise concerns about a broader market pullback, making $92,000 an important level to watch in the coming days. As always, Bitcoin price action is always volatile, and traders will be monitoring these levels to gauge the market’s next move.
Featured image from Dall-E, chart from TradingView