Bitcoin faced a sharp decline yesterday, testing crucial support below the $92,000 level. The move has raised concerns among analysts, as the $90,000 to $92,000 demand zone is seen as a crucial level to maintain Bitcoin’s bullish structure. A break below this range may indicate a deeper correction, which could shake market confidence in the short term.
The bearish sentiment is exacerbated by growing concerns that BTC may not maintain its current levels. Many traders watch price action closely for signs of a potential reversal or further decline. The risks are high, as this area represents a pivotal area for Bitcoin market momentum.
Adding to the discussion, Julio Moreno, Head of Research at CryptoQuant, recently shared key insights into Bitcoin’s on-chain metrics. According to Moreno, BTC cross-chain support could reach $80,000, which is in line with the price levels achieved by traders. This suggests that if the current demand zone fails, BTC could find its next support closer to $80,000, adding weight to the bearish outlook.
Bitcoin faces the risk of a correction
Following yesterday’s price action, Bitcoin remains solid above key demand levels, holding steady as it tests important support. However, there is a high risk that Bitcoin will see a correction in the $80,000 range.
Head of Research at CryptoQuant, Julio Moreno Shared data on the chain Which suggests that Bitcoin price support may hover around $80,000, which is determined by the trader’s realized price (represented by the pink line). This level represents the point at which unrealized profits (purple area) are close to zero, meaning there is little incentive for traders to sell further at these levels.
While the $80,000 level could act as strong support, it may not necessarily be reached due to ongoing demand and investor sentiment. Many in the market remain optimistic, expecting Bitcoin to rise higher in the coming year as more institutional and retail investors enter the space.
On-chain data suggests that traders have made significant profits, and with market sentiment still tilted to the upside, a sharp correction to $80K may not materialize, especially if demand persists.
At this point, Bitcoin faces a delicate balancing act. Any further consolidation above key support levels could strengthen the case for further price increases, but a broader market correction or shift in sentiment could lead to a short-term pullback. Traders and investors will be watching this price action closely to determine if Bitcoin is able to maintain its position above these critical levels or if a deeper correction is inevitable.
Technical levels of viewing
Bitcoin is currently trading at $94,600, after several days of bearish price action and active selling pressure. Today marks the end of the year, and it looks like BTC is set to form a bullish daily candle.
If Bitcoin can close above $92,000 in the coming hours, this would signal the first step towards a continuation of the uptrend. A successful close above this key level may indicate that buying momentum is gaining strength, which could pave the way for further upward movement.
However, for the uptrend to be confirmed, Bitcoin must reclaim the $100,000 mark. This would reinforce the upward trajectory and give bulls the confidence to rise further in the coming months. On the other hand, if BTC fails to maintain support above $92,000 and loses this level, it could lead to a deeper correction towards the $80,000 region.
Such a move would likely raise concerns about a broader market decline, making $92,000 a crucial level to watch in the coming days. As always, Bitcoin price action remains volatile, and traders will be watching these levels closely to assess the market’s next move.
Featured image by Dall-E, chart from TradingView