bitcoin faced a sharp decline yesterday, testing crucial support below the $92,000 mark. This move has raised concerns among analysts as the $90,000 to $92,000 demand zone is considered a critical level to maintain bitcoin's bullish structure. A break below this range could signal a deeper correction, which could impact market sentiment in the near term.
The bearish sentiment is compounded by growing fears that btc will not maintain its current levels. Many traders are closely monitoring the price action for signs of a possible reversal or further decline. The stakes are high as this zone represents a critical area for bitcoin 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 the price levels realized by traders. 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 faces correction risk
Following 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 see a correction to the $80,000 range.
CryptoQuant's head of research, Julio Moreno, <a target="_blank" href="https://x.com/jjcmoreno/status/1873738759407304975″ target=”_blank” rel=”noopener nofollow”>shared data on chain indicating that bitcoin price support may be around $80,000, 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 continue selling at these levels.
While this $80,000 level could serve as strong support, it may not necessarily be reached due to continued demand and investor sentiment. Many in the market remain optimistic, expecting btc to rise even further next year as more institutional and retail investors enter the space.
On-chain data suggests that traders have made significant gains and with market sentiment still leaning towards optimism, a sharp correction to $80,000 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 change in sentiment could trigger a short-term pullback. Traders and investors will closely monitor this price action to determine if bitcoin can hold above these critical levels or if a deeper correction is inevitable.
Technical levels to follow
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 looks like btc is ready to form a bullish daily candle.
If bitcoin manages to close above $92,000 in the next few hours, this would signal the first step towards a bullish continuation. A successful close above this key level would suggest that buying momentum is gaining strength, potentially setting the stage for a further bullish move.
However, for the bullish trend to be confirmed, bitcoin must regain the $100,000 mark. This would solidify the upward trajectory and give the bulls the confidence to rally even higher in the coming months. On the other hand, if btc fails to hold support above $92,000 and loses this level, it could trigger a deeper correction towards the $80,000 region.
Such a move would likely raise concerns about a broader market pullback, making $92,000 a crucial level to watch in the coming days. As always, bitcoin price action remains volatile and traders will closely monitor these levels to gauge the next market move.
Featured image of Dall-E, TradingView chart
