NAIROBI (CoinChapter.com)—Bitcoin’s (BTC) price continues its downward slide, trading at $94,903.53 as of Jan. 8, marking a 5.86% decline in the past 24 hours. The cryptocurrency’s market cap has dropped to $1.88 trillion, down 5.79%, with 24-hour trading volume reflecting the heightened activity.
Bitcoin Struggles Near $95,000 Amid Liquidation Wave
BTC/USD slipped to $95,200 on Jan. 8, marking a 5.27% decline. Data from Coinglass revealed that the market saw $694.11 million in total liquidations over the past 24 hours, with Bitcoin alone contributing $125 million. These losses stemmed from a sell-off triggered by unfavorable U.S. economic data, including ISM PMI and JOLTs Job Openings.
CryptoQuant’s Net Taker Volume for Bitcoin on Binance turned sharply negative, reaching a peak of -$325 million. This signaled heightened selling pressure, according to contributor Darkfost. Traders like Skew highlighted $95,000 as a critical level to monitor, warning of further declines if buyers fail to regain momentum.
Bearish Sentiment Grows as Institutional Inflows Slow
Coinglass data shows Bitcoin’s long-to-short ratio has dropped to 0.89, reflecting a bearish market sentiment. Institutional demand for Bitcoin also appears to be waning. Spot ETF inflows recorded $52.4 million on Jan. 7, down significantly from $978.6 million the previous day. Analysts warn that reduced inflows could exacerbate selling pressure.
Additionally, technical indicators point to continued bearish momentum. Bitcoin’s daily Relative Strength Index (RSI) dipped to 47, below its neutral threshold of 50. The 38.2% Fibonacci retracement level at $92,493 now serves as a key support zone, with a breach potentially opening the door for a retest of $88,000.
Outlook Remains Cautious Amid “Trump Dump” Fears
Market participants like Johnny anticipate heightened volatility as the Jan. 20 inauguration of U.S. President-elect Donald Trump approaches.
Analysts foresee potential downward moves to $88,000 in the near term. Despite the bearish outlook, traders like Josh Rager suggest a possible rebound by the weekend if BTC holds current support levels.
However, with spot flow and macroeconomic factors playing a pivotal role, Bitcoin remains vulnerable to further downside. The coming days will determine whether bulls can reclaim lost ground or if sellers will continue to dominate.
