Bitcoin’s price failed to recover after a sharp $5,000 drop in a single day, sparking fears of further downside. Analysts now consider a retest of $88,000 as “highly probable” amid heightened selling pressure and macroeconomic concerns.
Bitcoin Price Declines as Selling Pressure Intensifies
Bitcoin (BTC) fell below $96,000 on Jan. 8 as a spot sell-off pushed prices to a critical support level.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD sliding 1.7% lower on the day, adding to broader losses caused by mounting U.S. macroeconomic fears.
On-chain data pointed to growing selling pressure, with CryptoQuant highlighting significant activity on Binance.
“The hourly Net Taker Volume on Binance turned sharply negative today, signaling a substantial increase in selling pressure,” reported contributor Darkfost in a recent analysis.
According to the report, sell-offs intensified after the release of ISM PMI and JOLTs Job Openings data, which revealed unfavorable economic indicators for risk assets like cryptocurrencies.
Net Taker Volume hit -$325 million, marking the highest negative reading in 2025, further accelerating the bearish momentum.
BTC Price Eyes $88K Support Amid Liquidity Build-Up
Prominent traders are closely monitoring the $95,000 level, with Skew noting its significance for short-term price action.
“Spot flow is going to be vital for the rest of this week, and $95K will be pivotal,” Skew shared on X (formerly Twitter).
Market data revealed considerable bid liquidity below $92,000, with key buyer interest forming near $88,000.
Trader Johnny forecasted a potential dip to $88,000 within the next 2–3 weeks, coinciding with the U.S. presidential inauguration of Donald Trump.
“I think a move like this leading into the inauguration is highly probable,” Johnny noted, reflecting broader concerns about political and economic uncertainty.
Despite short-term bearish signals, analyst Josh Rager remained optimistic, predicting a bounce before the weekend.
“Not overly concerned with today’s choppy price action,” Rager commented. “We may see further drops, but a recovery by the weekend is possible based on current trends.”
Bitcoin Demand Remains Strong Despite Correction
While the price dip has caused widespread concern, on-chain metrics suggest underlying demand remains intact, supporting Bitcoin’s long-term bullish outlook.
CryptoQuant CEO Ki Young Ju pointed to the Apparent Demand Indicator, which measures the ratio of newly mined Bitcoin to those held for over a year.
“Bitcoin apparent demand is back,” Ki stated in a recent thread on X, highlighting strong investor interest despite near-term volatility.
Outlook: Will Bitcoin Rebound or Test $88K?
The next few days remain critical for Bitcoin as traders monitor support at $95,000 and key levels around $88,000.
A rebound could stabilize prices if buying pressure strengthens, but failure to hold support may lead to a deeper correction toward $88,000.
Investors are advised to watch macroeconomic developments and liquidity trends closely, as these factors will shape Bitcoin’s price action heading into 2025.
