Mon 13 Jan 2025 ▪
4
min reading ▪ by
Micaiah A.
The specter of a major correction in Bitcoin is becoming clearer, and the numbers don’t lie. For three days, the flagship crypto has been sliding inexorably, dangerously approaching the symbolic mark of $91,000. As analysts scrutinize overheating indicators on trading platforms, hopes of a rebound are dwindling. Faced with signals of growing tension, investors are on alert. Let’s dissect the issues together.
Bitcoin: a drop below $90,000 in sight?
Since its December peak at $108,353, bitcoin has been sailing through troubled waters. On Monday, the BTC price broke a key support at $92,493according to Fibonacci retracements. Currently, the pair is trading at $91,284, sliding dangerously towards the psychological threshold of $90,000.
Technical indicators hardly encourage optimism. L’relative force index (RSI) is stuck at 41, well below its neutral level of 50, while the MACD displays a bearish crossover.
A few numerical markers on this correction:
- -10% in five days since January 7;
- +2.35% Friday, a meager rebound quickly canceled;
- Key support expected at $85,000 if the $90,000 gives way.
As analyst Brannigan Barrett illustrates, the current slide could accelerate:
« Once below $91,000, the market risks slipping towards $78,000. »
Crypto trading: warning signals are piling up
CryptoQuant data highlights a clear overheating of the market. The estimated leverage ratio (ELR) is skyrocketing on several key platforms, including Bybit and Deribit. This indicator, which compares the open interest of Bitcoin futures to exchange reserves, points to an increased risk of correction.
« Bitcoin could well revisit its support before diving further », warns Matthew Dixon.
To top it all off, the QCP Capital report highlights a supercharged American economy. A thriving job market, with 256,000 jobs created against 160,000 expected, pushes back hopes of a rate cut by the Fed.
This dynamic fuels a vicious circle : rising rates, inflation, and increased pressure on risky assets like cryptos. The week promises to be decisive, with the publication of the PPI and CPI indices, real barometers for traders.
BTC price: between shadows and glimmers of hope
Despite this storm, positive signs are emerging. Coinglass data indicates a moderate recovery in institutional demand. Bitcoin ETFs saw a net inflow of $312.8 million last week, up from $255.2 million the previous week.
Although still timid, this dynamic could increase with the return of investors post-holidays.
Another ray of sunshine: Scott Bessent, potential Treasury Secretary under Trump, shows his support for Bitcoin, owning $500,000 in ETFs. This symbolic gesture fuels the hope that crypto remains a relevant refuge in the face of galloping inflation.
That said, the macroeconomic environment, marked by high rates and persistent inflation, continues to weigh heavily on the market. The next few weeks will be crucial to determine whether BTC can regain its role as a safe haven.
Despite the current unfavorable economic situation, bitcoin nonetheless remains a champion. With an annual gain of 120% in 2024, the flagship crypto has proven its resilience. 2025 could well be its year, heralding an imminent tidal wave, according to experts. See you at the summit?
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Micaiah A.
The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
