Bitcoin could drop under $88k if it fails to hold $95k support: analyst

Bitcoin could potentially tumble down to $88,000 if it fails to hold the key support level at $95k, according to an analyst.

Bitcoin (BTC) dropped 6% over the past day, falling below $96K as a spot sell-off driven by macroeconomic concerns pushed BTC price action to a “pivotal” level, contributing to an 8.4% slump in the global crypto market.

According to analyst Skew, following Bitcoin’s recent dip, a further drop to $95K—just $300 away at press time—could potentially lead BTC to retest levels as low as $88K.

“Right around 1D lows ($92K – $88K), bid liquidity has been buffered with a significant increase in demand,” the analyst noted, adding that spot flow will also play a vital part for the rest of this week.

A related chart showed liquidity blocks positioned lower in the Binance order book, signaling strong buyer interest near the $88,000 mark.

Skew’s scenario could play out as there has been an uptick in selling pressure on Binance, one of the largest cryptocurrency exchanges by trading volume.

According to CryptoQuant analysts, Binance’s hourly Net Taker Volume turned sharply negative on Jan. 8, hitting a yearly low of -$325 million during the release of the ISM PMI and JOLTs Job Openings data, which signaled unfavourable conditions for risk assets like Bitcoin.

Among other experts, fellow trader Johnny also anticipated a potential dip into that zone in the coming weeks.

Meanwhile, according to pseudonymous analyst Rekt Capital, Bitcoin has entered the $91,000–$101,165 range after failing to hold the critical daily support level at $101,165. This could see BTC oscillate within this range in the short term, with $91,000 acting as the next key support level.

The bearish predictions for BTC emerged as institutional demand appeared to weaken, evidenced by a significant drop in inflows on Jan. 7.

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