Bitcoin Price Analysis: Is BTC Doomed to Fall to $80K After 9% Correction?

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Over the past few days, Bitcoin‘s value has dipped again, with the market unable to sustain itself above the $100,000 mark.

This price action has caused a lot of uncertainty among market participants.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

Looking at the daily graph, we can see that the price surpassed the $100,000 level a few days back; however, it could not sustain this level as the following day’s candlestick wiped out all the gains and closed once again below the six-digit threshold.

I find myself bracing for potential drops as the market trends towards the $91K level, a critical support point that may give way this time. If this support level breaks, it could lead to a possible descent towards the $85K milestone and even challenge the $80K support area.

The 4-Hour Chart

Examining the 4-hour chart provides a much clearer picture of recent market trends. For approximately two months now, the market has been in a holding pattern between roughly $92,000 and $100,000. Although the asset has momentarily surpassed the $100,000 mark on two occasions, it has found difficulty sustaining further growth.

At the moment, the market is bound to retest the $92K support level once again, and its reaction to this zone would determine the short-term market trend. With the RSI also showing values below 50%, the momentum is clearly bearish, and the market is more likely to drop even lower.

On-Chain Analysis

By Edris Derakhshi (TradingRage)

Exchange Reserve

In the past few months, Bitcoin’s value has been climbing, but its miners are acting much like they typically do during market upturns. However, their actions could potentially lead to a decline in the near future.

This chart presents the Bitcoin miner reserve metric, which measures the amount of BTC miners hold. As evident, this metric has been falling rapidly since the market broke above $40K last year and is yet to slow down. While this profit realization is typical behavior by the miners, the resulting selling pressure is likely one of the reasons that the market is struggling to move past the $100K level.

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2025-01-09 16:09