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The specter of a major Bitcoin correction is becoming clearer, and the numbers don’t lie. For the past three days, the crypto beacon has been slipping inexorably, dangerously approaching the symbolic threshold of $91,000. As analysts scrutinize overheating indicators on trading platforms, hopes for a rebound are dwindling. In the face of signals of rising tension, investors are on high alert. Let’s dissect the stakes together.
Bitcoin: a drop below $90,000 in sight?
Since its peak in December at $108,353, Bitcoin has been navigating through troubled waters. On Monday, the BTC price broke a key support at $92,493, according to Fibonacci retracements. Currently, the pair is trading at $91,284, dangerously sliding towards the psychological threshold of $90,000.
The technical indicators do little to inspire optimism. The relative strength index (RSI) is mired at 41, well below its neutral level of 50, while the MACD shows a bearish crossover.
Here are a few numerical benchmarks on this correction:
- -10% in five days since January 7;
- +2.35% on Friday, a meager rebound quickly annulled;
- Key support expected at $85,000 if the $90,000 mark fails.
As analyst Brannigan Barrett illustrates, the current slide could accelerate:
“Once below $91,000, the market risks sliding towards $78,000.”
Crypto trading: alarm signals accumulate
The data from CryptoQuant highlights a clear overheating of the market. The estimated leverage ratio (ELR) is skyrocketing on several key platforms, notably Bybit and Deribit. This indicator, which compares the open interest from Bitcoin futures to exchange reserves, points to an increased risk of correction.
“Bitcoin could well revisit its support before diving further,” warns Matthew Dixon.
To top it all, QCP Capital’s report emphasizes a heated American economy. A thriving job market, with 256,000 jobs created against an expectation of 160,000, pushes back hopes for a rate cut by the Fed.
This dynamic fosters a vicious circle: rising rates, inflation, and increased pressure on risky assets like cryptos. The week looks decisive, with the publication of the PPI and CPI indices, true barometers for traders.
BTC Price: between shadows and glimmers of hope
Despite this storm, positive signs are emerging. Coinglass data indicates a moderate recovery in institutional demand. The Bitcoin ETFs recorded a net inflow of $312.8 million last week, against $255.2 million the previous week.
Although still timid, this dynamic could amplify with the return of investors post-holidays.
Another ray of sunshine: Scott Bessent, potential Treasury Secretary under Trump, shows his support for Bitcoin, holding $500,000 in ETFs. This symbolic gesture fuels hope that crypto remains a relevant refuge against rampant inflation.
That said, the macroeconomic environment, marked by high rates and persistent inflation, continues to weigh heavily on the market. The coming weeks will be crucial to determine whether BTC can regain its role as a safe haven.
Despite a currently unfavorable situation, Bitcoin remains a champion. With an annual gain of 120% in 2024, the crypto beacon has proven its resilience. 2025 could indeed be its year, heralding an imminent tidal wave, according to experts. Will we meet at the summit?
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
