Bitcoin Tumbles 5% to $96,000, Analysts Eye Further Drop to $88K

First Bitcoin ETF euphoria fades as markets "digest" president Trump's comments on crypto

  • Bitcoin Price dropped below $96,000 on January 8, marking a significant correction.
  • Market data shows a $5,000 single-day decline in BTC value.
  • Technical analysis suggests $88,000 retest appears probable.
  • Spot market selling pressure continues to impact price movement.
  • Trading indicators point to a critical support level test.

Bitcoin Records Sharp Decline Below $96K

Bitcoin experienced a substantial price correction on January 8, with the leading cryptocurrency dropping below $96,000 amid increased selling pressure in the spot market. According to data from TradingView, BTC/USD pair decreased by 1.7% during the trading session.

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Market Analysis Points to Further Correction

The recent price action suggests a potential retest of the $88,000 level, as technical indicators highlight weakening buyer support. The $5,000 single-day drop represents one of the most significant daily declines in recent weeks, raising questions about short-term market stability.

Technical Support Levels in Focus

Market data from Cointelegraph Markets Pro indicates that Bitcoin has reached what analysts describe as a pivotal price point.

Historical price patterns show that such rapid declines often lead to retests of previous support levels, with the $88,000 zone emerging as a critical area of interest for traders.

The spot market dynamics suggest institutional investors may be taking profits following Bitcoin’s recent rally above $95,000. Trading volumes across major exchanges demonstrate increased selling activity, particularly from large wallet holders, commonly known as “whales” in cryptocurrency markets.

This price movement comes as the cryptocurrency market adjusts to new year trading patterns, with volatility metrics indicating potential for continued price discovery in either direction.

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