Bitcoin analysts explain why BTC could avoid a drop under $90K – Cointelegraph

Bitcoin (BTC) price fell to a new low of $91,055 on January 9th, the lowest since December 1st. The next psychological support range is still below $90,000, and some market analysts expect a continued decline below this level.

However, the following four reasons suggest that BTC may avoid a drop below $90,000.

Crypto Fear and Greed Index drops to 3-month low

The Crypto Fear & Greed Index fell from a high of 78 to 50 after the price of Bitcoin fell 9% between January 7th and 10th. The index, which tracks broad market sentiment, fell to its lowest level since Oct. 14.

As reported by Cointelegraph, the recent plunge in the index was the largest decline in years and caused sentiment to shift from “greedy” to “neutral.”

Historically, BTC prices have shown reversals whenever the index drops into the neutral or fear zone, so technically this is a positive development.

Bitcoin indicators show 'market peak' has not yet arrived

Bitcoin's failure to sustain positions above $100,000 on January 6 sparked bearish concerns.

Series of 4 liquidation events over 2 months shown Potential weakness and liquidity drought prepared the market for another period of correction. However, from a fundamental perspective, Bitcoin has not triggered a bull market peak indicator.

Data from CoinGlass highlighted It shows that the apex crypto asset has not yet been retested and has not surpassed the previous market top signal. The Bull Market Peak indicator consists of 30 conditions that vary between charts and indexes, but none of the indicators has broken previous bull market highs in 2017 and 2021.

Crypto analyst Mickey Bull hinted that these price drops are an “opportunity” ahead of an expected rally.

Related: Fed officials are leaning toward “neutral” on policy, but expect clarity once President Trump begins implementing it.

Bitcoin whale purchases 34,000 BTC after year-end

While short-term volatility has rattled the market's weaker players, large holders have been actively accumulating Bitcoin since the end of December.

Cau Oliveira, head of research at Blocktrends, said institutional investors have accumulated more than 34,000 BTC (equivalent to $3.2 billion) since it fell below $108,000 on December 17th. Oliveira added:

“A large company took advantage of the consolidation to open a TWAP position and patiently accumulated just under $95,000.”

This means that even though BTC recently fell below $100,000, institutional demand remains high. Additionally, CryptoQuant analyst MAC.D said that while short-term investors are experiencing losses, they are providing an opportunity for accumulation rather than a reason for panic selling. he said:

“Selling your coins at this point may be a very unwise decision.”

It seems “impossible” to sell $6.5 billion of BTC in 6 business days

One of the main bearish factors impacting Bitcoin prices over the past two days has been rumors that the US government could sell more than $6.5 billion of BTC. Based on this, virtual currency critic Miya said the following. It may be “impossible” The government must carry out the sale within six business days.

President-elect Donald Trump was inaugurated on January 20th, and Miya highlighted The complexity of selling such large amounts of BTC during an impending and important political event. The issue is further complicated by President Trump's announcement that he plans to establish a Bitcoin reserve fund. That means it could be discussed during the formal appointment.

In other words, crypto enthusiasts argued that there is a good chance of a Bitcoin reversal as the market has already priced in bearish speculation.

As Mikybull shows, Bitcoin's liquidity pool is currently chasing the upside after clearing the lows below its previous range on the daily chart. There is still a chance that Bitcoin's core could fall below $90,000, but analysts say predicted We can expect a V-shaped recovery.

Related: Bitcoin Speculator Panic Sells at $92,000 in 'Right Time to Accumulate'