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.

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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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