Bitcoin faced a sharp decline yesterday, testing crucial support below the $92,000 mark. This move has sparked concern among analysts, as the $90,000 to $92,000 demand zone is seen as a critical level for maintaining Bitcoin’s bullish structure. A breach below this range could signal a deeper correction, potentially shaking market confidence in the short term.
The bearish sentiment is compounded by growing fears that BTC may not hold its current levels. Many traders are closely monitoring the price action for signs of a potential reversal or further decline. The stakes are high, as this zone represents a pivotal area for Bitcoin’s market momentum.
Adding to the discussion, CryptoQuant’s head of research, Julio Moreno, recently shared key insights into Bitcoin’s on-chain metrics. According to Moreno, BTC on-chain support could be as low as $80,000, which aligns with traders’ realized price levels. This suggests that if the current demand zone fails, BTC may find its next support closer to $80,000, adding weight to the bearish outlook.
Bitcoin Facing Correction Risk
After yesterday’s price action, Bitcoin remains strong above key demand levels, holding steady as it tests critical support. However, there is a serious risk that BTC could experience a correction into the $80K range.
CryptoQuant’s head of research, Julio Moreno, shared on-chain data indicating that Bitcoin’s price support may hover around $80K, identified by the trader’s realized price (represented by the pink line). This level marks the point where unrealized profits (the purple area) approach zero, meaning there is little incentive for traders to sell further at these levels.
While this $80K level could serve as a strong support, it may not necessarily be reached due to ongoing demand and investor sentiment. Many in the market remain bullish, expecting BTC to push even higher in the coming year as more institutional and retail investors enter the space.
The on-chain data suggests that traders have locked in significant profits, and with the market sentiment still leaning toward bullishness, a sharp correction to $80K may not materialize, especially if demand persists.
At this point, BTC faces a delicate balancing act. Any further consolidation above key support levels could strengthen the case for further price increases, but a broader market correction or a shift in sentiment could trigger a short-term pullback. Traders and investors will closely monitor this price action to determine if Bitcoin can hold its ground above these critical levels or if a deeper correction is inevitable.
Technical Levels To Watch
Bitcoin is currently trading at $94,600, following several days of bearish price action and active selling pressure. Today marks the close of the year, and it appears that BTC is set to form a bullish daily candle.
If Bitcoin manages to close above $92,000 in the coming hours, this would signal the first step toward a bullish continuation. A successful close above this key level would suggest that buying momentum is gaining strength, potentially setting the stage for further upward movement.
However, for the bullish trend to be confirmed, Bitcoin must reclaim the $100K mark. This would solidify the upward trajectory and give bulls the confidence to push even higher in the coming months. On the other hand, if BTC fails to maintain support above $92,000 and loses this level, it could trigger a deeper correction toward the $80K region.
Such a move would likely raise concerns of a broader market pullback, making $92,000 a crucial level to watch in the coming days. As always, Bitcoin’s price action remains volatile, and traders will be closely monitoring these levels to assess the market’s next move.
Featured image from Dall-E, chart from TradingView
