The cost of Bitcoin is holding steady near $94,500 and various on-chain indicators suggest potential warnings for the cryptocurrency market. Activity within the Bitcoin network has reached a two-month minimum, reflecting decreasing enthusiasm among investors towards the largest crypto asset category. Analysts anticipate that if Bitcoin fails to maintain its critical support at $92,000, it could plummet down to $70,000.
Economic factors outside of specific industries have played a significant role in increasing selling pressure, as recent U.S. jobs data has exceeded expectations. This unexpected strength has caused a postponement in the anticipated Fed interest rate cuts from March 2023 to June 2025. In the coming days, it will be essential to closely monitor the US Consumer Price Index (CPI) and Producer Price Index (PPI) data for further insights.
Bitcoin Network Activity Hits Lowest Since November
The Bitcoin network has seen a substantial decrease in usage, reaching its lowest point since November 2024. Moreover, there are now only approximately 667,100 active Bitcoin addresses. Crypto analyst Ali Martinez suggests that this drop indicates a slowing of user engagement on the network, causing investors to worry about potential repercussions for Bitcoin’s price.
There’s an increasing number of voices predicting that Bitcoin might fall even lower than its current $90,000 price point, potentially dropping by another 10-22%. Moreover, some on-chain signals for Bitcoin suggest vulnerability, which increases the likelihood of a correction happening before we witness the anticipated major bull run in 2025.
As a researcher, I’ve noticed an intriguing trend: The seven-day moving average of the Short-Term Holders’ Spent Output Profit Ratio (SOPR) has dipped below 1. This suggests that, on average, short-term holders are offloading their assets at a price lower than what they initially paid for them.
According to analyst Martinez, there’s a significant resistance area for Bitcoin priced between $97,000 and $99,500. This area contains approximately 1.26 million Bitcoins that were previously accumulated by around 1.22 million holders. If the price of Bitcoin manages to surpass this level, it could significantly impact the future direction of BTC‘s price movement.
How Low Can BTC Price Go From Here?
In simpler terms, well-known cryptocurrency expert, Benjamin Cowen, pointed out a common trend in Bitcoin’s market – during the years following the halving event, the BTC price typically drops by around 30% in January. This observation is based on past patterns.
As an analyst, I’ve observed that the upward trendline of the bull market support band persists, with the BTC price hovering around the $94,000 mark. Currently, my 20-week projection stands slightly above $81,000, while the 21-week Exponential Moving Average (EMA) is slightly higher at approximately $84,000. So far in January, Bitcoin has dipped only marginally to just over $90,000.
Looking ahead to January 2024, cryptocurrency expert Benjamin Cowen predicts that Bitcoin’s price may experience a period of stability (consolidation) for several months, followed by a significant rebound. However, it is also possible that there could be notable declines in the price before Bitcoin recovers and reaches its upper range again.
#Bitcoin Bull Market Support Band
— Benjamin Cowen (@intocryptoverse) January 13, 2025
Analyst Crypto Patel has pointed out that Bitcoin should maintain its position above the significant support point of approximately $92,000. Should it fall below this level, a potential adjustment might occur, taking the price down to around $70,000-$75,000. Afterward, there could be another surge aiming for $150,000-$160,000 in the long term. However, crypto expert Jeremie Davinci continues to forecast that Bitcoin’s price could potentially reach as high as $350,000 during its bull run.
Currently, Bitcoin’s price is decreasing by 0.34% and is being traded at approximately $94,178. Its market capitalization is currently around $1.864 trillion. According to Coinglass data, the open interest is slightly above $60 billion, while the 24-hour liquidation amounts to nearly $50 million.
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2025-01-13 09:34